Chinese Stock Markets Set For 10 Year Bull Run, Say Experts

by Philip Morton, Investors Offshore.com

26 April 2002

The China Academy of Social Science (CASS) has predicted a 10 year bull run for the mainland's stock markets, a South China Morning Post report revealed on Thursday.

The think-tank pointed out that, given the Chinese markets' performance despite the recent global economic slowdown, there is a good chance that they will enter a 10 year cyclical bull market in much the same way as the stockmarkets in Hong Kong, Japan, Taiwan, and the United States had done previously.

CASS warned that the mainland markets would need to undergo a period of adjustment, however, pointing to large fluctuations in the A-share (domestic yuan-denominated) and fledgling B-share (hard currency) markets over the past year or so.

However, this follows a report released earlier this month by the Shenzhen Stock Exchange, which warned that Chinese investors are currently dangerously overexposed to stocks.

The SSE polled over 2,500 individual investors across the country, and found that many had invested more than 23 times their average annual income in stock investments. The survey also found that an alarming 78% of Chinese investors questioned said that they relied on newspapers, television reports, and stock commentators for investment advice.

Recommended