Category: Money tips Release Date: 2006-02-24
Source: Xu-Yang Luo West China Securities
The Shanghai Composite Index and the Shenzhen B refers to the occasion of reaching a new high this year, the investing public on the Shenzhen and Shanghai stock index hit a new high of expectations are constantly increasing. As of Wednesday, Shenzhengchengzhi as well as the Shanghai Composite Index rose 9%, respectively, 6.4%, the two indices from the previous record highs were only 148,89 points, it is relatively Wednesday gained 211 points, respectively, the two cities, 73 point of view, high overnight!
Broad based pattern of pushing up asset prices
Experienced the rise since August 2006 for the first time since the adjustment of Shanghai and Shenzhen fell by 15%, 17%, close to the bull market adjustment of the initial 20% of the practice, followed by Shenzhengchengzhi again led the bull market to re-establish a pattern. From deep Composite Index hit a new high of the first, rather than component index or element B that led the point of view, investors are concerned about the degree of non-constituent stocks of the increased small-cap and the cap, lower is attracting speculative capital or the value of re-admission estimates, if the performance of listed companies and subject matter can not be synchronized to keep up with price increases, then the bubble at the same time breeding; while the Shenzhen B-shares more attractive to investors by the state-owned stock to reduce the impact of fluctuations, while B shares of stock to investors in the future doubts on whether the existence of a substantial rise. The Shanghai B share at this time hit a new high this year, the main factor is the strong compensatory growth of its own requirements, after all, the Shanghai B from its all-time high that there are still 30% of the price difference. Prima facie, in February the market hot spot continues a pattern of compensatory growth in January last year, lagging behind the Shenzhen and Shanghai stock index gains or stocks should continue to drastically compensatory growth.
Although the B-share index or deep KLCI trend leader, but its future on the Shenzhen and Shanghai stock market has played a leading indicator of the true role of the Shanghai and Shenzhen 300 index is still the index is currently closed 2588 points, is currently the highest closing point and, breaking the previous high point of 2599 point just around the corner. Leading role from the index point of view, the market is not just cheap compensatory growth stocks dominate, Shanghai and Shenzhen 300 constituent stocks continue to have funds sought after, for example, or behind the power, coal, and transport infrastructure plates, which usually constitute Sunshine said funds and private funds together to win-win situation. Because only the cap, lower compensatory growth of the state could easily be described as just a few kilometers to heaven, the end of the breeding of a bubble market, while the once blue-chip stocks rose simultaneously, under the premise will be understood as higher energy prices and a reasonable supplement. In the broad based pattern, the Shanghai and Shenzhen stock market asset prices rose steadily in the market does not appear clearly differentiated the mainstream varieties of circumstances, holding the New Year is the best option.
Or the possession of shares of stocks?
Judging from the current pattern of broad based view of the market, even if the New Year to take ownership, investors are still quite puzzled, in the end what the species can be held in the New Year can receive a red envelope to return it? This involves short-term speculation, in fact, must take after the Lunar New Year red envelopes has become a reflection of the blind spot. In a bull market, almost every day, holding a red envelope, before the Spring Festival or the Festival does not take a strict sense. The same time, this problem extends to the bull market of the usual modes of operation: possession of shares or stocks!
Look at 1000 points to 2900 points of bull market road, possession of stocks than the stocks were big profits for only a very small number of stocks beyond the possession of shares of those who profit. Therefore, holding festivals this point, we even pay attention to short-term holdings of this surface. Growth from performance point of view, finance, real estate and airline stocks are worth optimistic about the year 2007, this basic configuration can be a variety. From the industry inflection point of view, electronic components plate in the first and second quarter results for inflection point, Tiantonggufen, Farah electronics bargains configuration. Recent stir-equity financial stocks, while the Eastern bloc, Xiamen International Trade and so there is compensatory growth opportunities. Business opportunities from the Olympic point of view, such as Beijing Xidan Market concept stocks should pay attention to. Possession of shares of stocks suitable for the above stages, while the stocks the best option is to chase the front table or individual stocks, the greater the risk the higher the returns!
In the bull market of the road, a strong investor possession of stock options, Aggressive investors like stocks!
