PanAsianBiz

Stock Market, 2008 might be Tougher

by admin on January 14th, 2008

 Stock Market, 2008 might be Tougher

 After 3 years of downcast stock market, investors enjoyed two years of hefty gains since the year 2006. The Shanghai composite index has reached its max point at 6124.04 on October, 17th, 2007, with 130.4% growth higher than 2006.

 The index dropped to 4778.73 on November, 28th, and after that, the index finished at 5261.56 on December 28th.

 Considering the affections of the Stock Index Futures, no one doubts that investors should pay more attentions to the fluctuating market. Stock Index

Futures will be launched in March.

 2008 might be a new round of market adjustment.

 The Chinese government says it will fight inflation in the year of 2008. There are two main policy targets to prevent the hot economy from overheating and to stop the food price inflation from spilling over to broader inflation.

The Qualified Foreign Institutional Investor quota has been changed to $30bn from $10bn. This will also help the market.

In summary, 2008 might be a year of reversion.

Will you keep playing in the A stock market?

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POSTED IN: Doing Business in China