Re: Shanghai Index:
Let me tell you something about SH index. I have been observing it for a long time. It is not controlled by market forces, but greatly influenced by the government. When the government need to raise money to reform the state companies, it promoted the stock market. When it was afraid of overheating and creating social unrests, it forced it to go down.
Right now the politics in China is that the government facing huge headaches from Tibet unrests to hyper inflation. Last thing it needs is to have another stock market caused unrests. In the mean time, the government is flooded with cash from federal surplus to trade surplus. There were talks about give each person 1000 RMB tax refund. China has 1.3+ billion people, you can imagine the magnitude of the surpluses.
I believe the China market is very close to the bottom. The MMs are probably push the market down to force the government to act. I suspect the government will come out some kind of rescue plan in the next a few weeks, just in time for the olympic. The the market will explode with joys. So fasten your seat belts.
Buy cheap, undiscovered stocks!
Disclosure: I usually own the stocks I post the most. The more I discuss, the more shares I own. Do you own DD before placing the trades.
Please post stock symbols first in all your posts.
