China’s stock market whether bubble was

China’s stock market: whether the bubble was?

Even though strong
the collapse of the Chinese stock market, and before
this – a sharp rise in quotations, part
Experts say that this bubble
in the Chinese market at all and it was not. TO
example, a large and respected experts
Oppenheimerfunds Fund conducted a study
Chinese stock market and made
Conclusion: for some time the market will
unstable, but ultimately
the situation is stabilized. All the matter
that currently controls
imposed set of constraints for Actions
members, so we are seeing
strong and sometimes very chaotic movements.
Analysts believe the fund that the financial
sector does not affect the real economy
in China.

Regarding the bubble
the stock market, analysts say
Oppenheimerfunds, it really never
did not have. It was, of course, a dynamic rally
which led to a very strong
deviation of prices of many stocks from their
justified levels, but it was not
inflating the bubble. For example, despite
the fall in commodity prices, the shares of many
commodity companies have shown good
growth, and some companies with weak
records achieved growth of its shares
by simply changing the name.

Finally, this
“Nedopuzyr” compared with other
bubbles in the history of the world financial
Markets showed Chinese growth market
not as ambitious pace. A
the collapse of which everyone spoke after
a sharp decline in the index, strongly
It differs from the market decline in 1993, 2001 and
2008. The market has been tremendous this time
the number of private investors who
and suffered the most losses. AND
it is not surprising – after all, many use
Leverage. Only recently we said,
that more than 60 million were opened in China brokerage
accounts whose owners bought shares in
mainly with borrowed money. on other
the data received in the stock rally
attended only 10% of the population.

On the other hand,
it is believed that the authorities
Celestial specifically not allowed to
the further growth of its market to
minimize the scale of the disaster. Can
be a good thing, that fall was
right now, and not when the damage would have been
much more destructive. This week, China
imposed new restrictions on the stock market,
to stabilize the falling market.
Now the authorities are struggling with speculators
– largest brokerage companies are more
do not allow traders to play
a fall.

Since June peaks
Chinese stock market has fallen
approximately 30% and at the moment
Stabilization finrynka – one of the key
power problems, because many and so
We have already lost confidence in the market – as a
Chinese and foreign players.

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