Analysts see another good year for China stocks
Updated: 2008-01-03 16:54
SHANGHAI - China's stock markets will have another good year in 2008, but corporate profit growth is likely to decelerate amid tightening measures, analysts said.
 An investor looks at the electronic stock board in Shanghai on January 2. Domestic stock markets closed higher on the first trading day of 2008 as more than 1,000 stocks gained. [Xinhua] |
According to a report from Hua An Fund Management Co, Ltd., the trend of Chinese investors shifting their wealth into equities hasn't fundamentally changed. However, the report said, the profit growth of listed companies would slow to an estimated 35 percent in 2008 from around 55 percent last year, as the impact of monetary tightening and similar measures began to be felt.
Stocks brace New Year with rises
China's A-share IPOs top the world this yearOn Wednesday, the Shanghai Composite Index, which covers both A and B shares, was up 11.25 points or 0.21 percent, to close at 5,272.8 points. The Shenzhen Component Index on the smaller market climbed 155.53 points, or 0.88 percent, to stand at 17,856 points.
China's rapid economic growth in 2007 was accompanied by increasing inflation pressure. Soaring food prices drove the consumer price index (CPI) to an 11-year high of 6.9 percent in November.
The government has pledged to adopt tighter monetary policies and prudent fiscal policies to ensure structural adjustment and uniform economic development this year.
Hou Ning, an economic analyst, said the tight monetary policy would affect the stock market, but the impact would take time to materialize.
|
|
|
||
|
||
|
|
|
|