A-share market, the worst stock market in the world!

A-share market, the worst stock market in the world!
Jul 1, 2008 03:12
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	According to the statistics, the Shanghai Composite Index decreased by 20.31 percent last month, the biggest slump per month in recent 14 years. In the first half of 2008, it has slumped by 48 percent, becoming the worst stock market in the world. It is said that about 90 percent have lost a lot of money in A-share market. Presently, the total market value of Shanghai and Shenzhen stock market has decreased from 32 trillion yuan to 17.8 trillion yuan. About 15 trillion yuan has evaporated. Meanwhile, many analysts say that the prospect of A-share market in the second half of this year might not be optimistic. Although the index has fallen by 51 % from its peak (6124 points) to around 3000 points (to be specific, below 3000 points), it might continue to fall. The new lowest level might be at 2500 points.

Jul 1, 2008 03:12

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: offline

According to the statistics, the Shanghai Composite Index decreased by 20.31 percent last month, the biggest slump per month in recent 14 years. In the first half of 2008, it has slumped by 48 percent, becoming the worst stock market in the world. It is said that about 90 percent have lost a lot of money in A-share market.

Presently, the total market value of Shanghai and Shenzhen stock market has decreased from 32 trillion yuan to 17.8 trillion yuan. About 15 trillion yuan has evaporated.

Meanwhile, many analysts say that the prospect of A-share market in the second half of this year might not be optimistic. Although the index has fallen by 51 % from its peak (6124 points) to around 3000 points (to be specific, below 3000 points), it might continue to fall. The new lowest level might be at 2500 points.

Jul 1, 2008 22:30

WCTMAN
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Join Date: Dec 17, 2005
Status: Offline

The Chinese stock market is very immature compared to, say, the NY Stock Exchange. As an immature entity, this market has little in the way of enforcement of rules and regulations. In the absence of enforcement and the subsequent imposition of serious penalties ( ie huge fines, jail time, lifetime trading suspensions ) for market offenses such as insider trading, sure, the novice is going to get fleeced. Of course, there are people who made huge profits in this "wild west casino", and those people were and are connected to govt. and the principals in the corporations listed. This is insider trading at its finest. Look no further than China Petroleum. While I don't have the exact numbers, most analysts agree that the IPO was grossly undervalued, and those who had access to these shares made huge overnight gains. This type of market behaviour is very damaging to the market itself, since without confidence in the fairness of the "game", buyers either stay away or bail out at the slightest bit of bad news, and shares fall ( plummet ) accordingly. Unless and until the "authorities" clean up the game, and its image and reputation, the market will continue to suffer from wild fluctuations, making investment a very risky business indeed.

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