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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (4011)	12/27/2004 7:53:54 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Almost 80% of small and medium sized investors report losses on China's stock markets in 2004 Shanghai. (Interfax-China) - Almost 80% of small and medium investors in China's stock market are losing money and their losses are extending, a recent survey by China's state-sponsored China Securities Journal indicates. According to the survey that was conducted on 2,753 small and medium investors in 20 major Chinese cities, 79.34% of those being surveyed saw their investment in stocks shrink while, 15.33% saw their assets unchanged and only 5.33% were earning money from the market. Even smart investors that succeeded earning money in the bearish market saw their profits were still quite disappointing - none reported their profit margin had surpassed 30% and the majority reported profits at under 10%. A majority of those investors blame their losses to their misjudgment on the broad market momentum this year that was mainly affected by the governors' investor-confusing policies on the national stock markets. "I just can't understand the nine national policies launched early this year, which were said to perfect the market and protect investors' interests. The stock market has been bearish for more than 3 years and it is about time for a reverse…. the national policies are encouraging and profits by listed companies have been boosted. But all those positive factors lead to a broad market decline from this March rather than a market surge," a Shanghainese retiree told reporters in a interview with local TV station Diyi Caijing last week. Retirees are the most visible of China's small investors, crowding neighborhood stock centers around cities such as Shanghai. However, industry insiders have a quite different understanding on the bearish market - they believe it is the peverse market mechanism that led to the market slump. "It is nothing strange to see the market plunge. I think it is gradually clear that the rule of the game in China's stock is to raise capital from investors and put aside giving them returns. No one can win the game when the market mechanism prevents investors from earning money," a certified securities analyst, who asked not to be named, told Interfax. Jiang, a senior securities analyst from Beijing-based Minzu Securities expressed the same opinion to Interfax. "As a matter of fact, not only those small and medium investors but also a majority of those financial institutions are losing money from the stock market. This is quite a strange thing and only has to blame the stock market mechanism and rules. If the authorities fail to adopt correct and effective measures to reform the structural problems of the market, survival of those investors - including the small and medium investors - will be further threatened and their losses will no doubt continue to extend," Jiang said. China's stock market has been bearish since 2000 despite the country's soaring economic growth. The benchmark Shanghai composite index recorded a five-year low of 1,259 points this September and since then has struggled around the psychologically important benchmark of 1,300 points. interfax.com