Category: Money tips Release Date: 2007-03-14
"Wolf" has really come. Last week, the Shanghai Composite closed at 2673.21 points, 7.26% weekly decline; Shenzhengchengzhi to close at 7348.03 points, 10.64% weekly decline. The two index hit its biggest weekly decline in the current round of Quotes. In the market generally agreed that the Shanghai and Shenzhen stock markets have been in the "golden years" of the great bull market of the time, this horse, "Wolf" to the unexpected, what the impact will be for the market? How can investors in the "cow" "Wolf" competing benefit from this?
The stock market suffering from mad "cow" disease
2006 Shanghai and Shenzhen stock market's strong performance, led many investors, especially for the ordinary people know nothing about the stock market began in 2007, trading of stocks, a number of unprecedented moves were crazy to many involved in the old city for a long time investors are surprised:
Fried funds are now frequently prescribed actually 24% of the annual interest rate, borrowing fried Fund; some investors will be on hand at the mortgage to the bank, to raise more funds into the stock market; in order to attract customers, some banks for mortgage-holders to re-lending open the door. If the application is a part of the bank's mortgage-related financial services, just through the online application, self-help loans, loan funds will soon be into their own account.
January 22, the Shanghai index hit a new high, Japan's first super-multi-billion dollar turnover, which is equivalent to one month the stock market downturn of the volume, five hundred shares end more than a year after an absence of reproduction. Being labeled a "casino", had been "overall forgotten" five years after the maneuvering as China's stock market has everyone's attention again recaptured. Office, bank, and the dinner table, people everywhere talking about the stock; clerks, salespersons, farmers and even the janitor uncle district, have begun to place on the stock interest in the hands of many investors and even gave up work a full day bubbles in the hall. 18 months from the Shanghai Composite Index jumped 1,000 points below the highest peak of nearly 3,000, a number of institutions and even think that this year's Shanghai Composite Index to 5,000 points can be. Just like a stock market has become difficult to control madness "buffalo."
"Wolf" has really come
In the market generally agreed that the Shanghai and Shenzhen stock markets have been in the "golden years" when the great bull market, "Wolf" is not a view over the region. Last week, the Shanghai Composite closed at 2673.21 points, 7.26% weekly decline; Shenzhengchengzhi to close at 7348.03 points, 10.64% weekly decline. The two index hit its biggest weekly decline in the current round of Quotes. It should be noted is that banks, real estate, steel and other leading plate become "air force", and contributed to the severity index decreased role. Weeks in which Sinopec fell 9.32%, ICBC weeks fall 8.37 percent, China Life fall 10.61 percent weekly, and a record low since listing, Baosteel, Wuhan Iron and Steel shares decline in weeks, have also exceeded 10%.
Quotes for the current round of adjustment, many people will blame some of their people in the market criticism of the theory of the stock market bubble: Rogers, Andy Xie, who sang for the stock market space, it is considered the stock market decline "scapegoat." But as long as carefully think about it, if these people can play, if true, "skillfully deflected the question" effect, then we really have a bubble in the market.
When the price is greater than the value of the time, the price will be the beginning of the current decline. The most simple law of value, investment in the stock market but occupy a most important role. From the current stock market point of view, what we need is a solidified at the bottom of the bull market, and this "bottom", not only by the rolling of hot money piling up, but on the improvement of texture of listed companies. According to the latest authoritative published in January a new A share accounts at more than 1.38 million, in December last year, 2.34 times the number of new accounts. Is even more shocking is that in January the number of new accounts for more than in 2003 and 2005, the annual number of new accounts; this set of data is probably the most direct cause of the stock market decline.
Or Xi Pan peak
As the broader market last week, despite drastic changes, many new investors have begun gradually deepened concerns about the market outlook. So, what is the adjustment of the current market peaked broad market or a bull market in the violent Xipan it? For this issue, the views of the majority of institutional investors tend to the latter.
Comprehensive point of view of a number of agencies, the general consensus is that the pattern of the bull market is already taking shape, the market switch to bear highly unlikely. After all, this round of the bull market has not changed the fundamentals, a good macro-economic growth, yuan appreciation brought ample liquidity and profitability of listed companies to accelerate growth of favorable factors have not changed. Thus, the sharp fall is precisely the opportunity to buy good stocks.
Of course, for the short-term trends, institutions relatively cautious view. Some agencies believe that the approach of the Chinese at the end, a lack of willingness to do more capital, broader market will continue to shock bottom afternoon. Is also an institution believes that the broader market is still expected to remain at 30-day order online side shocks, while the market turnover also indicates a significant decline has taken the majority of investors wait and see strategy, short-term high heavy volume is difficult to occur again the trend, but will Su Liang shocks of the stock market to maintain.
How do investors benefit
Three trading days last week, faced down the Shanghai Composite fell below 2,700-point mark yesterday, easily the situation, a number of agencies said that although the rise in long-term pattern is still obvious, but short-term shocks Quotes may have been opened, band operation may well be operating strategies to respond to shocks Quotes.
At the same time, investors should adhere to the principle of long-term investments. At present, China is set to enter the golden age of investment, macro-economic will be in the past 10 years, sustained a healthy rise in the stock market's bull market which has laid a firm foundation, with the general direction of the judge, investors need to do is a firm hold long-term investment, especially in relatively good stocks for some texture, but also have such investment principles. Rational short-term market fluctuations in the face to be able to fully share the benefits of economic growth.
In addition, buy some can comfortably carry on but the yield is relatively common in this financial product to invest in a higher market shares of bank purchase financial products are a good choice, high safety of principal of such products are generally expected annual rate of return can be reach 7%, a shorter duration is to balance the security benefits of mobile species.
