Monday, June 4, 2007

China's Stocks Tumble Again.......

China's stocks tumbled after the government's main securities newspaper signaled that policy makers won't try to arrest a slump that wiped out $224 billion of market value in the previous three trading days.

The CSI 300 Index dropped 7.2 percent to 3530.19 as of 2:40 p.m. local time. The measure, which tripled in the past 10 months, has plunged 15 percent from its May 29 peak after the government increased the tax on share trades to 0.3 percent.

The speed that stock prices soared by was ``extremely unusual'' and highlighted ``structural bubbles'' in the market, the state-owned China Securities Journal wrote in an editorial.
About half of the stocks included in the CSI 300 plunged by the 10 percent daily limit, including Huaneng Power International Inc., the nation's largest electricity producer, and Air China Ltd., the biggest international carrier.

``Investors, particularly those who have recently entered the market, are a bit disappointed that the government hasn't done anything to support the market,'' said Fan Dizhao, who helps manage about $1.8 billion at Guotai Asset Management Co. in Shanghai. China Vanke Co. led declines among property developers after a newspaper report said the government will soon announce measures to cool the real estate market, including increasing the supply of land. Even after the recent declines, the CSI 300, which tracks yuan-denominated A shares listed on China's two exchanges, is up 72 percent this year.
The problem is here why the regional market not following the fall ? Is this a golden opportunity for you to buy in more shares at lower price ? This question I strongly believed that nobody will answer me directly because there is no specific answer for this. Again we need to Let The Market Rule....

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