Category: Money tips Release Date: 2006-04-03
Management and the people may have baffles me: Why are piles of good policy is still difficult to draw up the stock market? Why spate of bad still difficult to suppress the property market bubble?
June 27 Shang Fulin, the split share structure reform, after the press conference, from 1124.64 points, fell last Friday (July 8) closing 1017.98 points. "1000 points to defend the war" once again begins, Monday (July 11) Xinhua News Agency reported that as "The Commission in conjunction with a portfolio of relevant State Council departments play." In other words, the SFC upcoming multi-good, follow-up positive will be posted. The Shanghai index opened nearly 10 points after hearing the high jump, 4 minutes Mogao to 1143.21 points, but then fall into the pattern of Pandie to close once again to move closer to 1,000 points. Good still can not stop the pace into 1000 points, only to let the management and the people once again shaking their heads in frustration.
In contrast the property market. Similarly, the Xinhua News Agency earlier this month in some places again ineffective regulation of the conduct of criticism of the property market. Xinhua article says there are indications that, with the central government to stabilize housing prices of the continuous introduction of various control policies and implementation of policy effects starting to show. However, the current regulation and control results are preliminary and reflect the major changes in the current market, the outstanding problems such as irrational supply structure has not yet been fundamentally resolved. Article particular, pointed out: "Some are doing contrary to this policy objective." Standing on people's point of view, can only remain stubbornly high prices in frustration, shaking his head.
The stock market does not rise and not fall in the property market, for sound economic development and social stability of the negative impact of self-evident. In fact, from investment returns and investment risk perspective, it is easy to understand the stock market does not rise and the property market did not fall. The root causes of the stock market is not up is the lack of riches. Some media reports, "6.8 Blowout" big month after, a number of investors in Chengdu loss of two number. This may be a minority, but "6.8 Blowout" Quotes only one month has been "colors" to make sure that the vast majority of investors stuck with the loss and then to try the taste. Sun Chenggang in the "6.8 Blowout" the prophecy, "which means that China's stock market the end of a long-term bear market, the new beginning of a bull market." Accordingly, if investors predicted that the stock market, and then to look at Xinhua News Agency July 11, "good combination of punches," there will be the number of active buying up enthusiasm. Even if the management of funds into the stock market _ is taking a big gate, the lack of effect of the stimulus money is still difficult to rely on the funds to buy up pulling up a long time or after the stock market.
Besides the property market may not fall, mainly because not subject to money-losing effect of "suppressing." In the role of macro-control policies, the real estate market is moving to curb investment, control investment, and guide rational consumption, stable housing prices is expected to target direction. May in fact, people still rates a "fear of heights," Shanghai property prices in other places but to slow down the pace up. Since the property can be a modest rise, and many residential units in Shanghai and other big cities are scarce resources, they will not soon lose money effect. Management control of the property market goal is to "stabilize prices" which may in fact not to slightly lower the cost, it is difficult to see the "stability" effect of the word. One side is the lack of money effects of the stock market, on the other side is the lack of money-losing effect of the property market, active "hot money" should be very clear where to vote edge. Comparison of investment risk to ask, "the property may be less than the stock market" may be the answer to many people. This is not a deliberate policy to go against, but because the property market is a lack of money-losing effect "knock Town tiger," while the stock market effect is the lack of money as a "dessert."
Seesaw between the property and the stock market phenomenon, as some market participants said, "to China's current strength of private capital is not possible at the same time supporting the two bubbles." This means that the property market may not fall, it will be difficult to arouse a real market rally. Thus, the management and control of the property to save the stock market to combine an incorrect understanding of "stable prices" will lead to rose. After all, the property market to make money effect is paper wealth, neither eating nor when when available, the majority of the people is still a suite which has devoted a lifetime savings. Comparing the property as long as the beneficiaries do not fall in the stock market does not rise to the victims, as well as the property market did not fall and the stock market does not rise, would have been difficult to find the next determination. On the stock market to save the stock market, its effect has been fully tried in recent months. Save the Stock Market, "Private" and must take down the real estate market is not "cut down", otherwise a positive for stocks will continue to be thrown into the water.
