China’s Stock Market Still Hasn’t Lost Its Appeal Despite Going Through a Tumultuous Year
Looking back on the end of China’s stock market, the year when the Shanghai Composite Index surging climbed to the highest point of 5178 points, many investors are looking forward to the A-share market can regain lost ground, back on the peak of 6124 points in 2007, however, two months, came to a standstill, the broader market fell to 2850 points, it is still low volatility.
2016 China’s stock market will look like, this battle is not there investment opportunities? Irrational mad cow has become history, executive president of Minsheng Securities Research Institute tube Kiyotomo looking forward to 2016 to usher in the Chinese stock market can be a rational Manniu, his optimism comes from the confidence of the stock issuance registration system reform. He believes that the registration system for subsequent bull market accumulation, as much as the positive impact of the split share structure reform in 2006, that the bull market in 2007 before and after 2004.
China’s stock market still hasn’t lost its appeal despite going through a tumultuous year, said Wall Street Journal.
The Shanghai Composite Index gained 9.3 percent as of Monday close after losing as much as 43 percent of its value over the summer, heading to end the year as one of Asia’s best-performing major benchmarks, according to the newspaper.
Such rally outpaced many other global benchmarks, including a year-to-date gain of 0.1 percent in the S&P 500 and a 4.7 percent decline in FTSE 100.
The Shenzhen Component Index has risen 15.2 percent this year, while the Nasdaq-style ChiNext board tracking Shenzhen-listed growth stocks surging 85.9 percent.
A number of metrics including trading volume, account openings and the amount of credit used to invest showed Chinese investors remain committed to buying stocks, as compared to times of languishing for years with investors fleeing the market, said the Journal.
Domestic investors are convinced that the government would continue to support the market, after it stepped in, buying stocks to restore market faith amid the summer rout. According to the paper, some analysts estimate the rescue cost hundreds of billions of dollars.
On signs of market stability, the regulator resumed initial public offerings in November after a five-month freeze.
China will also launch a registration-based IPO system to replace the current one based on approval in March next year to step up the role of the country’s stock market and provide necessary financing for companies.
The registration-based IPO system will emphasize the information disclosure rather than corporate prospect and profitability, and companies and the market would decide IPO supply and timing.