三级aa视频在线观看-三级国产-三级国产精品一区二区-三级国产三级在线-三级国产在线

US EUROPE AFRICA ASIA 中文
Opinion / Op-Ed Contributors

Stock market bonanza is a worrying sign

By Zhu Qiwen (China Daily) Updated: 2015-06-13 07:47

Stock market bonanza is a worrying sign

Stock information is displayed at a trading hall of a securities firm in Shanghai.[Photo/Agencies]

Have Chinese shares been flying too high? Or, is the ongoing surge in stock prices just the beginning of a super rally toward a new record?

These questions must be weighing heavily on the minds of not only domestic investors who are opening new brokerage accounts by the millions every week, but also Chinese policymakers who reportedly expect a moderately bullish stock market to help overall economic growth.

The benchmark Shanghai Composite Index increased 1.54 percent to end at 5,023.1 points on June 5. It was the first time in more than 7 years that the index climbed above the psychologically important mark of 5,000 points since the Chinese stock market crashed from a historic high of 6,124 points in late 2007 to 1,664 points over the span of one year.

While the SCI has risen by more than 50 percent, China's Nasdaq-style ChiNext Index in Shenzhen has soared by over 160 percent this year. The wealth effect is so huge that it is said share buyers in Shanghai on average earned about 150,000 yuan ($24,180) from this bullish market in just the first four months of the year.

But Chinese investors, especially the tens of millions of retail investors should be cautious both against sudden market correction and excessive optimism that the market could maintain this pace forever.

The roller-coaster-like ride Chinese investors have experienced over the past two weeks indicates that the volatility of the stock market will only increase as more people disagree with each other over the current valuation of Chinese shares. The SCI lost about 400 points in just two days at the end of May and plunged 6 percent on May 29 before recovering all losses.

Besides, even though most newcomers have not gone through a complete boom-bust circle of the stock market, they have no reason to expect the Chinese stock market to be an exception to the rule. If the bursting of bubbles in overseas stock markets happens too far to cause concern, the crash of the Chinese stock market seven years ago should remind people of the risks associated with too expensive shares.

For Chinese policymakers, an expanding stock market is more than welcome, especially when the transformation of the economic growth model has intensified without encountering too steep an economic slowdown.

The Chinese economy grew 7.4 percent in 2014, the slowest in more than two decades. And the government has lowered its 2015 target to 7 percent to accommodate slower but sustainable growth marked by qualitative improvement and innovation.

In theory, a booming stock market can help a country's economic transformation at least in two ways: by boosting domestic consumption through the wealth effect of the stock rally and by supporting mass entrepreneurship and innovation through more initial public offerings for start-ups and growth enterprises.

Nevertheless, as the SCI has surged vigorously from about 2,000 points to above 5,000 in just one year and finished at 5,166.35 on Friday, policymakers need to examine the potential risk of stock bubbles as well as the real effect of the country's loose monetary policy.

Given the abundance of reports saying high valuation has prompted entrepreneurs to cash in on their newly listed companies' shares and professors to compete with the stock boom to draw college students' attention in the classroom, policymakers should pay attention to the long-term impact of a runaway stock bubble, which could affect the economy and society both.

Besides, as the United States is positioned to increase its interest rate soon, Chinese policymakers should prepare for unwanted changes in the global financial market that could make the overheated domestic stock market extremely vulnerable.

The author is a senior writer with China Daily.

zhuqiwen@chinadaily.com.cn

(China Daily 06/13/2015 page5)

Most Viewed Today's Top News
...
主站蜘蛛池模板: 国产伦精品一区二区三区免费 | 黑人欧美一级毛片 | 欧美日韩综合网 | 亚洲国产成人久久99精品 | 久久国产精品99久久久久久牛牛 | 五月婷婷丁香久久 | 午夜激情在线视频 | 免费看黄片毛片 | 国产精品久久精品视 | 在线精品视频成人网 | 精品欧美成人bd高清在线观看 | 小泽玛利亚一区二区在线看 | 国产特级 | 美女久久久 | 国产美妇| 久久精品国产一区二区 | 日韩第二页| 美女草| 亚洲国产婷婷俺也色综合 | 91最新网站免费 | 麻豆免费永久网址入口网址 | 欧美+日本+国产+在线观看 | 免费羞羞视频网站 | 国语对白avxxxooo | 久久久精品2021免费观看 | 国产精品原创永久在线观看 | 久久草网站 | 午夜爱爱毛片xxxx视频免费看 | 色黄啪啪18周岁以下禁止观看 | 欧美黑人两根巨大挤入 | 可以直接看的黄色网址 | 国产12页| 九九热精品免费视频 | 日本www高清免费视频观看 | 风间由美理伦片在线观看 | 午夜免费福利不卡网址92 | 精品国产成人综合久久小说 | 亚洲成人在线网站 | 尤物视频在线免费 | 成人毛片18女人毛片免费 | 免费视频国产 |