Stocks in the fast growing economy inched up slightly over last two days but in a rather leery way. It touched again a new low yestoday with a suprising close at a positive number, thanks on a large extent to Sinopec, which dragged down the index and ended up push it up at the close. Trading was not even moderate as the market took a cautious way on mixed information.
After a three days of "gains", Shanghai composite index is still struggling around 1100 in the market today. My guess is chances are money is flowing into the market after blue chips such as Yangtze Power(600900.SS) and Sinopec(600028.SS)shaked off their negative impacts. Yangtze Power's 400 million locked shares started floating yestoday and Baosteel is losing market attention for its bad seasoning issue.
From the chart we observe, the market is also in critical moments in terms of technical analysis. The price channel are breaking and the market is certainly heading to one direction. Chance is there comes a big bullish engulf in the days ahead. Investors should otherwise be alert of further drop of the index.
US market is having a great week with Dow gained 300 points, partly due to good economic news and falling oil price.
Thursday, May 19, 2005
Sunday, May 15, 2005
New Hoax?
I post here an article from International Herald Tribune, where the recent hype of "new reform of ownership structure" was clearly commented, it's not worthwhile to make argument, since I, and maybe you, might always missing the point.
"China's third attempt in six years to promote stock market investment by reducing the government's $260 billion in share holdings failed to stem losses over the past year. Prices may fall further whether the plan succeeds or fails.
Four companies - Hebei Jinniu Energy Resources, Sany Heavy Industry, Shanghai Zi Jiang Enterprise Group and Tsinghua Tongfang - were picked last week for trial sales of the state's shares.
The Shanghai Composite index, tracking the larger of China's two stock exchanges, slid 4.4 percent last week amid concern that the plan would trigger a flood of sales and lower prices. "Nontradable" shares, owned mainly by the government, account for two-thirds of market value in China.
"There will be lots of depression for Chinese investors," said Bich Pham, a fund manager at TAL Global Asset Management in Hong Kong. "Bankers and brokers are always concerned about excess supply" of shares, he said.
The Shanghai Composite and a similar index for the Shenzhen exchange are the worst performers for the past 12 months among 80 global benchmarks tracked by Bloomberg. Shanghai's benchmark has declined 31 percent in dollar terms and Shenzhen's has lost 34 percent.
......
Share prices for Sany Heavy, Zi Jiang and Tsinghua Tongfang surged by the 10 percent regulatory limit on the first day of trading after outlining their plans. Trading in Jinniu Energy resumes Monday after being suspended for introduction of its plan.
The sales are "a turning point" for the Chinese stock market because they will end the government's position of being both watchdog and largest shareholder, Morgan Stanley analysts wrote in a May 9 report.
Sales will also lead to better corporate governance and more shareholder rights at companies once the state no longer has a stake, they wrote.
Each company plans to make payments to investors that would help offset the impact of additional stock on the price of their shares. All four are offering additional shares, and Sany plans to include a cash payment."
At a close of 1100 level, Shanghai composte index was halved since its high in 2001 with average loss of 70 percent for investors. The investors concerns are centering on if the regulatory body is again leading them another dire straits.
"China's third attempt in six years to promote stock market investment by reducing the government's $260 billion in share holdings failed to stem losses over the past year. Prices may fall further whether the plan succeeds or fails.
Four companies - Hebei Jinniu Energy Resources, Sany Heavy Industry, Shanghai Zi Jiang Enterprise Group and Tsinghua Tongfang - were picked last week for trial sales of the state's shares.
The Shanghai Composite index, tracking the larger of China's two stock exchanges, slid 4.4 percent last week amid concern that the plan would trigger a flood of sales and lower prices. "Nontradable" shares, owned mainly by the government, account for two-thirds of market value in China.
"There will be lots of depression for Chinese investors," said Bich Pham, a fund manager at TAL Global Asset Management in Hong Kong. "Bankers and brokers are always concerned about excess supply" of shares, he said.
The Shanghai Composite and a similar index for the Shenzhen exchange are the worst performers for the past 12 months among 80 global benchmarks tracked by Bloomberg. Shanghai's benchmark has declined 31 percent in dollar terms and Shenzhen's has lost 34 percent.
......
Share prices for Sany Heavy, Zi Jiang and Tsinghua Tongfang surged by the 10 percent regulatory limit on the first day of trading after outlining their plans. Trading in Jinniu Energy resumes Monday after being suspended for introduction of its plan.
The sales are "a turning point" for the Chinese stock market because they will end the government's position of being both watchdog and largest shareholder, Morgan Stanley analysts wrote in a May 9 report.
Sales will also lead to better corporate governance and more shareholder rights at companies once the state no longer has a stake, they wrote.
Each company plans to make payments to investors that would help offset the impact of additional stock on the price of their shares. All four are offering additional shares, and Sany plans to include a cash payment."
At a close of 1100 level, Shanghai composte index was halved since its high in 2001 with average loss of 70 percent for investors. The investors concerns are centering on if the regulatory body is again leading them another dire straits.
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