2007-05-28
Economists are divided about how long the Chinese mainland's bull stock market can continue to charge ahead, with some arguing that yuan-denominated A-shares are overvalued, the China Securities Journal reported on Monday.
"In my opinion, the benchmark Shanghai Composite Index could realistically hit 6,000 points in 2008", the report quoted Jin Yanshi, chief economist with Xiangcai Securities, as saying.
"The value of the A-share market would then be 24 trillion yuan (3.17 trillion U.S. dollars), equivalent to 96 percent of China's gross domestic product", Jin added.
Hua Sheng, president of Yanjing Overseas Chinese University, pooh-poohed Jin's prediction, saying the overheated market would not last long and that a 6,000-point index would require "a painful adjustment".
"Risks can be reduced if the government adopts a series of measures now to guide the stock market; otherwise the market will be unable to sustain the increasing risks," said Hua.
Post by The Dragon Lady, See full article at China Daily.
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