Why doesn't "hot money" flow into the stock market?

Why doesn't "hot money" flow into the stock market?
Jun 16, 2008 04:21
YVONNE Points: Join Date: Nov 29, 2004 Status: offline	Just in one week, the Shanghai Composite Index has slumped 13.84 percent, the biggest weekly decline in recent 12 years. This reminds me of the decline in the end of December in 1996. From April 1st to December 12nd in 1996, the Shanghai Composite Index had increased about 124 percent and the Shenzhen Component Index, 346 percent. From October, the government had adopted some measures to control the increase in the stock market but didn't take much effect. Until December 16th, a new trading system was introduced. From that day, the shares had been plunging for 5 days, slumping 20.25 percent. Really horrible! An old investor said that he never forgot that whole week. This time, A shares has plunged below 2900 points. Will it continue to slump? No one knows. However, a phenomenon has drawn people's attention. It is reported that a lot of "hot money" has flowed into the domestic market. However, it seems that they haven't flowed into the stock market. Otherwise, the stock market won't slump so badly. The real estate, another place to hide the "hot money", also seems calm. Where does "hot money" flow to?

Jun 16, 2008 04:21

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

Just in one week, the Shanghai Composite Index has slumped 13.84 percent, the biggest weekly decline in recent 12 years. This reminds me of the decline in the end of December in 1996. From April 1st to December 12nd in 1996, the Shanghai Composite Index had increased about 124 percent and the Shenzhen Component Index, 346 percent. From October, the government had adopted some measures to control the increase in the stock market but didn't take much effect. Until December 16th, a new trading system was introduced. From that day, the shares had been plunging for 5 days, slumping 20.25 percent. Really horrible! An old investor said that he never forgot that whole week.

This time, A shares has plunged below 2900 points. Will it continue to slump? No one knows. However, a phenomenon has drawn people's attention. It is reported that a lot of "hot money" has flowed into the domestic market. However, it seems that they haven't flowed into the stock market. Otherwise, the stock market won't slump so badly. The real estate, another place to hide the "hot money", also seems calm.

Where does "hot money" flow to?

Jun 26, 2008 10:52	#1
APAULT Points: Join Date: Mar 11, 2006 Status: Offline	How do you define 'hot money'?

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