According to a China Business News poll which surveyed Chinese economists, 90 percent of them predict that Chinese shares will rise to a new record high in the second half of 2007.
19.5 percent of the economists think that Chinese A-shares would surpass the 5,000-point mark, establishing a new record at the end of this year. However, none predicted a dazzling leap through the 6,000-point barrier.
43.9 percent of these experts estimated a fluctuation at between 4,500 to 5,000 points during the rest of the year with 26.8 percent saying it would not top 4,500 points. A miserly 9.8 percent of them are not so optimistic, saying the stock market would not hit a new high.
As for the capital market problem, most experts support tighter market monitoring and the drafting of stricter measures against insider trading.
He Fan, assistant to the director of Institute of World Economics & Politics under Chinese Academy of Social Sciences, suggests that the government should seize the chance to accelerate the reform of its financial departments and the capital market when the current bubbly capital market has much room to improve.
Xu Mingqi, deputy director of the Shanghai Academy of Social Sciences' Institute of World Economy, points out that booming stock markets have led to too many short-term investments by listed companies, which could prove negative to the latter's research and development activities. To counter this, the government should strengthen supervision over activities of listed companies, especially the transparency of capital utility.
For more details, please read the full story in Chinese. (
http://www.china-cbn.com/s/n/000002/20070719/000000073402.shtml)
(China.org.cn July 19 2007)
