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It would appear that not much seems to be buying shares of financial management in a more feasible. Do not buy shares to ordinary people what to buy? From the relationship between earnings and interest rate theory, at zero interest rates, earnings

It would appear that not much seems to be buying shares of financial management in a more feasible. Do not buy shares to ordinary people what to buy?

From the relationship between earnings and interest rate theory, at zero interest rates, earnings may be infinite. In other words, if the current level of interest rates to maintain a level of, at any price to buy shares are rational.

Foam is the source of regulatory

In front of our analysis of the "bubble" of the evidence the two are not set up. Even said that zero interest rates, the earnings can be infinite. Do I want to say that the current stock market bubble without it?

No, not at all.

Now we look at the "bubble" to the third argument, and mature capital market, China's stock market price of over-estimated.

This is a fact. The most obvious is the same in Hong Kong and the mainland-listed H shares in Hong Kong over all the shares cheaper than the mainland, is the most exaggerated of Luoyang Glass, the Shanghai Stock Exchange on May 21 closing price was 10.32 yuan, while that of domestic pay The latest price was 0.87 Hong Kong dollars, the difference was more than 10 times.

With interest rates obviously can not explain this phenomenon. Hong Kong, various commercial banks have the right to determine their own interest rates, but each more or less the same rate. To HSBC, for example, the line of 1,000 yuan more than the one-year Hong Kong dollar deposit interest rate 3.05 percent, and China's recent deposit rate is almost the same level. Recently, Hong Kong's inflation was slightly lower than that of the mainland, about 2% from top to bottom.

This calculation, the level of interest in Hong Kong although not "negative interest rate", but with the Mainland is not a very big difference.

Why, then, the mainland than Hong Kong equity shares cheaper?

The secret lies in the fact that Hong Kong's stock market system is better designed. Whether regulatory guidelines, the specific ways and means of regulation, or stock-related judicial system, as well as securities exchanges, lawyers, accountants, and other intermediary functions and responsibilities, and even ways and means to issue shares in Hong Kong and, of course, the United States, There are many worthy of our study late.

Hong Kong shares lower than the mainland, the most intuitive one of the reasons why Hong Kong is relatively abundant supply of stock.

Hong Kong's small population of 6,900,000, only roughly half of the population of Shanghai; Hong Kong in 2007 is expected to GDP of about 2 trillion yuan this year, while the mainland's GDP is expected to more than 23,000,000,000,000 yuan; However, the total market value of the Hong Kong stock market has Near 15,000,000,000,000 yuan (May 21 in accordance with the Hang Seng Index close to 21,000 points), almost 10 times its GDP; the mainland stock market is just over 17,000,000,000,000 yuan, less than 75% of GDP.

The data cited is to make one important issue: the supply of shares on the stock market is relatively abundant, while the mainland stock market's apparent tight supply.

Abundant supply, investors can be relatively easily pick out the election, in excellent selection of the best, "shop around" and the election cost is relatively better investment company, the stock price formation Cuolayouzhi, the overall price level is not high; and In the Mainland, on the one hand, the "negative interest rate" equal to the fact people rush to the stock market on the one hand, the stock supply can not keep up, the immediate concern in the stock market, first of all people do is "robbing a bargaining chip," Let it be good or evil, First to buy again. As a result, refuse and the blue-chip stocks Qi Zhang, the third-line stocks and shares first to fly a total of the spectacular scenes.

So the authorities to take the trouble to come below the specialized requirements "to further enhance investor education" and "desperate to prevent blind investment and irrational behavior."

From the truth, the level of high-earnings ratio of the market means that a higher IPO price, of course, to be listed companies more attractive. However, we note that a number of high-quality mainland companies listed on overseas exchanges election.

The reason, of course, more, one of the key factors in the management of the train of thought. From the previous emphasis on the stock market for the services of state-owned enterprises, to this day still be used to set up an artificial threshold, to keep up with general University engage in "a wide-Jin Yan." To second-guess a man of heart, the high threshold set for IPO investors want to be the guardian of: naive investors, deceived how to do? To guess his secret motives to second-guess, is that artificially create scarcity, setting the space rent-seeking. Wang Xiaodan case can be made for this footnote.

Everyone has been calling for a GEM N years, up to now have not pushed out. Corporate debt as well. The establishment of a multi-level investment market has been crying a lot, but substantial progress is not great.

In fact, investors need is not a guardian, but more investment opportunities as well as the appropriate judicial protection.

In a good system, who would dare to deceive investors, whether intermediary or listed companies, ranging from a fine to go bankrupt, and are subject to heavy prison. May not be able to finally eradicate the phenomenon of deception, but we are certainly better than the stock fraud is much more to come.

In China today, if you stole 10,000 yuan others, you may face several years in prison; However, if you adopted from the stock market fraud "stealing" Investors 100,000,000 yuan, you are not likely to Shashi . Take a look at the recent announcement by the Nanfang Securities, think of a few years ago Yiankeji, Luliang Makers. These cases which are not in billions of dollars, to punish them? We are making this market read the words: money, stupid people, to speed.

In addition to the listed company, trading on the supervision of the United States than there are obviously strong. Recently, two out of the United States and the Chinese securities regulatory cases, they reflect the market's regulatory efforts and speed of response. And here we are, Rat shout for so many years before finally seizing a tenement building, is said to be due to family reasons which led to his "Taiyimieqin" became public in the final. Supervision is not making an atomic bomb, the U.S. side can do on our side we have the conditions to do. Nothing but problems in, willing to do so, willing to spend so much price.

A few years ago, Wu said that China's stock market, even "if the casinos are not," I do not think this thesis in the past this period there have been changes for the better.

In a "not even a casino, such as" the market, since only by doing more to make money, since people in droves to money from the bank to which Chung, its rise is inevitable and will inevitably lead to the ultimate bubble.

However, the bubble is not the reason for those departments that require investment in education, and educators in their own.

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