At the end of the pulse on how the stock market Money Tips

Category: Money tips Release Date: 2005-12-18

A bull market is undergoing fundamental changes in the pattern of

Near the end of the year, will show a variety of factors, such as: fund companies to make annual reports of the time, the Fund must take the main force of their performance, so select a good fund shares will rise, resulting in broader market up; the stock market as a whole rose, the leading shares subject to more attention, is the market sought after object, to the hot spots scattered, the compensatory growth stocks oversold stocks will always be some performance; the beginning of a holiday, trading market closed, capital on the market for a profit, the main use of the funds would go up in other markets, such as the repo market, so leave to withdraw money before the stock market will fall ... ...

These are the characteristics of China's stock market, which also has investments in capital market law. But not with such a law, at the end of the stock market, there is no research value? Real data show that the situation is not immutable.

The future development trend of the stock market is - Overall, the bull market trend is still to the good, but to adjust short-term needs.

Good is the industry's consensus on the medium-term trend

LU Yi-zhen, director of Prudential Fund Research said, "Now with the peer chat, the most frequently heard is 'long-term bullish market,' but good things are too expensive."

Obviously, for the medium-term trend, the industry is basically non-existent controversial view. From the perspective of the broad market, the market overall trend is undoubtedly for the better - with the share reform comprehensively advance and is nearing completion, the current market environment has been getting better and better; many still underestimate the value of the core blue-chip stock index, led by their there is still hope a new high; for this year's earnings, the reaction is better than ever with the 2005 performance of listed companies from high to low contrast, full-year 2006 results will occur after the pre-low-high trend. Has been said that all the A-share companies expected a profit increase of 32%, so beautiful in profit performance index will promote the further opening up of space.

"Look quarterly this year is so over the years is most comfortable," the well-known listed companies, analysts Ho Wan-nan with the success of share reform of listed companies are major shareholders of the company's attitude from the previous "hollowing out" to "inject", performance of the company makes a fundamental improvement in performance of the bull market worth looking forward to.

In addition to these obvious positive factors, historical reasons, can also increase the confidence of the current point position. From 2001 into the broad market began to adjust, the market after nearly five years of bear market, many stocks are severely oversold, investors suffered heavy losses. Now has come to Hu Zhi Although more than 1,800 points, but some of the old shareholders have not yet loosened, and the average share price from the point of view, the current 1800 is only the equivalent of the previous 1500 points or less.

Currently, A-share market dynamics of price-earnings ratio of 18.5 times and 1.91 times book value, in addition to the history than in 2005, only the 1994 level with this approach, whether it's vertical comparison with the historical or international, horizontal comparison, are is a relatively low level, broad market index of blue-chip index stocks at lower levels. Relatively abundant liquidity in China in 2007 is still expected to continue to maintain the constant rise in the market to provide a strong external motivation.

Therefore, the bull market has not ended, the market outlook will continue to rise.