Shanghai Dim-SumTidbits 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:
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
"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
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