Chinese stocks slumped on Tuesday!

Chinese stocks slumped on Tuesday!
Jun 12, 2008 01:54
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	On Tuesday, Chinese stocks had their biggest slump from February. The Shanghai Composite Index dropped 8.11 pecent, cloasing at 3206.56 points. "The magnitude of the latest RRR hike took many by surprise and is fueling further cautiousness, as investors consider the impact of soaring commodity prices on the Chinese corporate sector. This latest action came less than a month after the previous RRR hike and demonstrates that the government's tightening campaign remains in force. It also reflects concern that May M2 growth could accelerate from 16.9% in April." FT reported.

Jun 12, 2008 01:54

JIMMYB
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Join Date: Feb 7, 2007
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On Tuesday, Chinese stocks had their biggest slump from February. The Shanghai Composite Index dropped 8.11 pecent, cloasing at 3206.56 points.

"The magnitude of the latest RRR hike took many by surprise and is fueling further cautiousness, as investors consider the impact of soaring commodity prices on the Chinese corporate sector. This latest action came less than a month after the previous RRR hike and demonstrates that the government's tightening campaign remains in force. It also reflects concern that May M2 growth could accelerate from 16.9% in April." FT reported.

Jun 12, 2008 11:13	#1
WCTMAN Points: Join Date: Dec 17, 2005 Status: Offline	Well, what do you know...Another round of inexperienced day traders doing what they do best, which is panic. None of this business about RRR means a thing to these people, and there are lots of them; they see their precious stocks take a dip in value, and it is time to dump.

Jun 13, 2008 04:11	#2
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Yesterday, Shanghai Composite Index closed at 2957.53 points, which was below 3000 points. The statistics shows that A share market in Shanghai has lost 2.04 trillion yuan just in last three days. For the average investor, each of them lost about 35400 yuan in last three days. Will it jump back as those investors expect?

Jun 13, 2008 11:28	#3
GUEST60122	If it keeps dropping.. i see a bottom at 2,500.. I'm not in the chinese stock market..but this is the time i may want to average my way in! As Warren Buffet always said "be greedy when everyone is fearful, be fearful when everyone is greedy."

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