Should Chinese people export their capital?

Should Chinese people export their capital?
May 8, 2008 03:27
guestChinesestocks	Doing investment in Chinese stock market is really like riding a roller coaster. In the autumn of last year, Shanghai A shares made a price/earnings ratio of 50 at the peak. However, A shares hasn’t performed very well this year. After Chinese authorities announced to adjust the stamp tax for stock transferring, the stocks have been rising for a while. Yesterday, it fell drastically, slumping 4 percent. Now that the domestic market is turbulent, why not export capital outside China? In “How China's citizens could provide a prop for US equities”, John Plender quotes from Mr Dumas that “the Chinese authorities should allow private individuals to export capital.”Since Chinese investors have poor domestic choices, they might “be content with a return rather lower than the long-term return on US equities and this would provide a prop for the US equity market when earnings are under pressure.” What do you think? Is it a good ideal that China do investment in American equity market?

May 8, 2008 03:27

guestChinesestocks

Doing investment in Chinese stock market is really like riding a roller coaster. In the autumn of last year, Shanghai A shares made a price/earnings ratio of 50 at the peak. However, A shares hasn’t performed very well this year. After Chinese authorities announced to adjust the stamp tax for stock transferring, the stocks have been rising for a while. Yesterday, it fell drastically, slumping 4 percent. Now that the domestic market is turbulent, why not export capital outside China? In “How China's citizens could provide a prop for US equities”, John Plender quotes from Mr Dumas that “the Chinese authorities should allow private individuals to export capital.”Since Chinese investors have poor domestic choices, they might “be content with a return rather lower than the long-term return on US equities and this would provide a prop for the US equity market when earnings are under pressure.”

What do you think? Is it a good ideal that China do investment in American equity market?

May 8, 2008 03:29	#1
GUESTCHINESE...	By the way, you can use this link to read the whole article of John Plender: http://www.ftchinese.com/sc/story_english.jsp?id=001019193

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