Will A shares continue to rise in May?

Will A shares continue to rise in May?
May 4, 2008 04:32
YVONNE Points: Join Date: Nov 29, 2004 Status: offline	Before May Day Holiday, Chinese government had lowered the stamp tax for stock transferring to 1%。. This has revealed that the managers hope the market could develop stablely and healthly. Encouraged by this move, both Shanghai and Shenzhen Stock Exchanges have welcomed more than 4 percent increase in the market. Some investors have regained their confidence to hold their stocks. Another good news is that the net profit of the listed companies in 2007 has reached 864,499 billion yuan, increasing 50 percent compared with last year. Really surprising! I am wondering how they made it. Once the Shanghai Composite Index slumped below 3000 points and many investors had lost a lot of money. How could those listed companies make profit in this situation? The happiest thing is that the stocks are starting to rise. However, how long will the rebound last? Do you think it will continue to rise in May?

May 4, 2008 04:32

YVONNE
Points:
Join Date: Nov 29, 2004
Status: offline

Before May Day Holiday, Chinese government had lowered the stamp tax for stock transferring to 1%。. This has revealed that the managers hope the market could develop stablely and healthly. Encouraged by this move, both Shanghai and Shenzhen Stock Exchanges have welcomed more than 4 percent increase in the market. Some investors have regained their confidence to hold their stocks. Another good news is that the net profit of the listed companies in 2007 has reached 864,499 billion yuan, increasing 50 percent compared with last year.

Really surprising! I am wondering how they made it. Once the Shanghai Composite Index slumped below 3000 points and many investors had lost a lot of money. How could those listed companies make profit in this situation? The happiest thing is that the stocks are starting to rise. However, how long will the rebound last? Do you think it will continue to rise in May?

May 4, 2008 09:54

MARRIE
Points:
Join Date: Jan 7, 2008
Status: Offline

((Another good news is that the net profit of the listed companies in 2007 has reached 864,499 billion yuan, increasing 50 percent compared with last year))

What's the source of the good news? Which sector has such amazing performance? If the the increase of sales revenues is attributed to the inflation, the receprocal increasing cost will cancel out earnings. The explainations of the net profit inflation is that they made money from side business instead of from core business, which means the wealth is bubble or fake and most income is from speculation in stock market. My opinion could be extreme or subjective before i do some research or read the audited managment report.

May 4, 2008 21:20	#2
YVONNE Points: Join Date: Nov 29, 2004 Status: Offline	Marrie, the good news was released by 1551 A share companies in Shanghai and Shenzhen Stock Exchanges in their annual reports. Refering to the truth of their annual reports, I also have doubt. As I wrote, how could they make profits when the market was bearish?

May 4, 2008 22:00	#3
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	yvonne, I believe chinese financial media has been critisizing listed co. distraction from their business core - bubbles after bubbles...

May 5, 2008 21:00	#4
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Some listed coporations actually have lost a lot of money in the first quarter. The net profits of the SINOPEC and China Life Insurance Corp have reduced 60 percent compared with the same period in 2007.

May 5, 2008 22:13	#5
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	Shanghai Stock Market brings lots of joys to retired persons. Some of them spend most of time sitting before screen at home, watching realtime info, put orders to sell or buy via punching the keyboard with 3 mugs of green tea per day. But I discourage my parents to enter mkt because one of them has heart disease. LOL

May 6, 2008 21:27	#6
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	"But I discourage my parents to enter mkt because one of them has heart disease. LOL " Hehe, a wise decision. Investing in the stock market is like riding roller coaster. For those who suffer heart diseases, better get away the stock market. Although I don't have heart disease, I won't try to do investment in the stock market because I DON'T want to get the heart disease.

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