Chinese stock market this month unpleasantly surprised investors. Even though rumors of imminent economic recovery of China, the country's stock market lost over two weeks about 20%. The result was a rather strong reduction of all world stock markets, reports Reuters.
Generally, the stock market Celestial always keeps pace with the dynamics of global financial markets. Last year Chinese stocks have fallen in price before the fall of the national economy, and this year - on rumors of a gradual recovery - showed significant growth. Experts say that recent negative market of China may be an indication of the immediate economic problems, as well as the fact that the yield of the world economy from the crisis will be protracted.
True, there is another point of view: it is quite possible that the Chinese stock market is simply overvalued. During the first seven months of this year, the stock indices of China added an average of 80%. Do not overestimate the cost Chinese market: its growth was too rapid, - said Tim Condon, ING representative. According to him, investors could simply underestimate the magnitude of the current economic downturn.
course, in comparison with other major states economy Celestial demonstrates very good dynamics. At the end of July this year industrial production in the country grew by 10.8% compared to the same period last year. At the same time capital costs for production have grown over the first 7 months of this year to 32,9%.
Against this background of positive statistics grown and Chinese stock market. His role was played by politics in Beijing: a long-time government poured money into the Chinese economy. Ultimately, these large-scale investments have played a role: the economy of China began to emerge from the crisis, followed by the rapid growth demonstrated and the stock market.
The government poured money into the property market. In the end - on expectations of a quick economic recovery - and grew market share, - said Macquarie economist Paul Cave. However, soon gave way to fall in growth, as it became clear that the rapid recovery of the global and Chinese economy in particular should not wait. In the near future in the banking sector, China may see liquidity shortage. These concerns - one of the main reasons for the decline of the Chinese stock market indices, - considers Galaxy Securities analyst Zhang Chzhuo.
According to most experts, in the near future, investors will closely analyze what is happening in the world credit markets. If the volume of lending to China will be reduced, it could trigger another wave of falling of quotations on the Chinese stock market. Market participants expect the volume of lending for the year will be around 10 trillion yuan (about 1.4 trillion dollars). If the final figure will be closer to the analysts, the market will take this news very positively, - adds Condon.
Recommendations for market shares: LUKoil, Norilsk Nickel, Rostelecom, Gazprom, Mosenergo, Surgutneftegaz, Sberbank Transneft has finished filling the oil the pipeline Eastern Siberia - Pacific Ocean from Lensk to OlekminskMessage Medvedev - signal Ukrainian eliteIn 1 half of 2009 revenues Irkutskenergo under RAS grew 23.6% to 18.5 billion rublesPositive dynamics is formed by a weakening dollar, the market of major base metals on FridayAsia: signs of stabilization of the economy continue to please investorsRussia metallurgical sector lags behind the European sites, where the mining shares rising 3%After a morning of growth in Russia's market has left correctional movementRusHydro developed a plan to eliminate the consequences of the Sayan-Shushenskaya GES
Experts: Out of the world economy from the crisis will be protracted
Chinese stock market this month unpleasantly surprised investors. Even though rumors of imminent economic recovery of China, the country's stock market lost over two weeks about 20%. The result was a rather strong reduction of all world stock markets, reports Reuters.
Generally, the stock market Celestial always keeps pace with the dynamics of global financial markets. Last year Chinese stocks have fallen in price before the fall of the national economy, and this year - on rumors of a gradual recovery - showed significant growth. Experts say that recent negative market of China may be an indication of the immediate economic problems, as well as the fact that the yield of the world economy from the crisis will be protracted.
True, there is another point of view: it is quite possible that the Chinese stock market is simply overvalued. During the first seven months of this year, the stock indices of China added an average of 80%. Do not overestimate the cost Chinese market: its growth was too rapid, - said Tim Condon, ING representative. According to him, investors could simply underestimate the magnitude of the current economic downturn.
course, in comparison with other major states economy Celestial demonstrates very good dynamics. At the end of July this year industrial production in the country grew by 10.8% compared to the same period last year. At the same time capital costs for production have grown over the first 7 months of this year to 32,9%.
Against this background of positive statistics grown and Chinese stock market. His role was played by politics in Beijing: a long-time government poured money into the Chinese economy. Ultimately, these large-scale investments have played a role: the economy of China began to emerge from the crisis, followed by the rapid growth demonstrated and the stock market.
The government poured money into the property market. In the end - on expectations of a quick economic recovery - and grew market share, - said Macquarie economist Paul Cave. However, soon gave way to fall in growth, as it became clear that the rapid recovery of the global and Chinese economy in particular should not wait. In the near future in the banking sector, China may see liquidity shortage. These concerns - one of the main reasons for the decline of the Chinese stock market indices, - considers Galaxy Securities analyst Zhang Chzhuo.
According to most experts, in the near future, investors will closely analyze what is happening in the world credit markets. If the volume of lending to China will be reduced, it could trigger another wave of falling of quotations on the Chinese stock market. Market participants expect the volume of lending for the year will be around 10 trillion yuan (about 1.4 trillion dollars). If the final figure will be closer to the analysts, the market will take this news very positively, - adds Condon.
Recommendations for market shares: LUKoil, Norilsk Nickel, Rostelecom, Gazprom, Mosenergo, Surgutneftegaz, Sberbank
Transneft has finished filling the oil the pipeline Eastern Siberia - Pacific Ocean from Lensk to Olekminsk
Message Medvedev - signal Ukrainian elite
In 1 half of 2009 revenues Irkutskenergo under RAS grew 23.6% to 18.5 billion rubles
Positive dynamics is formed by a weakening dollar, the market of major base metals on Friday
Asia: signs of stabilization of the economy continue to please investors
Russia metallurgical sector lags behind the European sites, where the mining shares rising 3%
After a morning of growth in Russia's market has left correctional movement
RusHydro developed a plan to eliminate the consequences of the Sayan-Shushenskaya GES