Wednesday, April 25, 2007


Shanghai Dim-Sum
Tidbits Of Useful Info


a) Turnover rose past 300bn yuan (US$39bn / RM132bn) for the first time ever in a day on Tuesday. I can see the remisiers and dealers gasping at the value in ringgit! For KLSE RM3bn a day, we are already shouting that the market is over-heated.
b) Total number of new share account (A-share) opened in April 2007 alone was 3.31m. Total number of new accounts opened in 2006 was 3.084m.
c) Year-to-date, the combined markets of Shanghai and Shenzen have risen 71% as of yesterday.
d) Crazed retail activity not limited to mainland Chinese investors but international investors as well. There is a a near stampede by approved foreign mutual funds to launch new China Funds to cater to the insatiable demand from international investors who do not wished to miss the boat. AIG-Huatai has a 10bn yuan (US$1.3bn) new China equity fund. Guotai Asset Mgmt also has a new similar sized fund. China Asset Mgmt and Bosera Asset Mgmt have also launched / about to launch similar sized funds.

Its like spotting a hole in the Titanic while 99% are still partying in the upper decks.

2 comments:

rask3 said...

Hi,

Cause for worry for short term investors around the globe, I presume.

Isaac Newton lost a bundle during the South Sea Bubble, centuries ago. Imagine a mucho great scientist and mathematician participating in the folly and madness of the crowd. What can we expect from lesser mortals?


Rask

bOcyOGL said...

"b) Total number of new share account (A-share) opened in April 2007 alone was 3.31m. Total number of new accounts opened in 2006 was 3.084m."

FYI(IUDAK): I remember reading somewhere (newspapers?)that a chinese primary schooler actually went begging on the streets (or drop out of school or other sort of fund raising, i forgot) in order to raise money to invest in the chinese stock market. Dont you think its crazy? or the kid is smart?

bocy