The Financial Times sees a new trend among the investors at the Shanghai stock market. Smaller and more dangerous investments were swapped for more solid participation in the bigger companies like Sinopec. Also ICBC, the Bank of China and ZTE were doing pretty well as some of the smaller companies hit the maximum drop of ten percent per day.
Today the market was very volatile again, going between +2 percent and -3 percent, ending in the lower regions.
1 comment:
Too much money with few vehicles to invest in safely make for a dangerous situation. Even with the lengthy experience and numerous choices US investors have, a quick kill is too attractive, and is ultimately tempered by reality. China also will not be immune to the invisible hand of the "marketplace." Realistic shocks including widespread unethical management and substandard accounting methods will come as bitter disappointment to countless gamblers (oops, I mean investors) when they discover that the quick kill was made not by them, but by the companies in which they sunk their funds.
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