Chinese investors are divided over whether it's safe to keep buying shares in
the volatile stock market.
In a poll conducted on China Daily's website,
www.chinadaily.com.cn, 46.82 percent of the 1,053 respondents said they would
still buy more shares despite the recent fluctuations. But 36.94 percent
disagreed, while the rest said they didn't know.
China's stock market
recently saw sharp swings, dropping almost 10 percent on February 27. Global
stock markets were similarly affected.
The drop in stock prices has
raised concerns of not only stock investors, but also high-ranking
officials.
Zhou Xiaochuan, governor of the People's Bank of China, ascribed the global stock slump to globalization. He said he believed the slump was "not
triggered by macroeconomic factors and thus would not bring about significant changes".
Some participants in the online survey agreed. According to one, the
fluctuation signaled that the domestic stock market "is becoming sounder".
"The domestic stock market is in sync with the international one. People
should have faith in such a sound and international market," the netizen
said.
Again, some said the fluctuation was not entirely bad for China's
stock market. One Web commentator said: "a crash will be healthy in the long run
It will scare away speculators, and help create a healthy environment for
investors in the long run, hopefully for foreigners like myself as
well."
Famed stock investor George Soros last week said China's A-share
market plunged probably because it is growing at an unsustainably rapid rate.
Chinese officials just hoped to cool down the market a bit but not drag
it to a bear market, Soros was quoted as saying. "I believe China's stock market
is sure to maintain stable growth till the 2008 Olympic Games," he said.
Some netizens shared Soros' views. "China's economy is growing; the drop
in prices is only a temporary phenomenon," said one. "It will go up again. I'll
continue buying," said another netizen.
But quite some respondents
showed no confidence in China's stock market, fearing they will lose their
investments.
"I think the Chinese stock market has a long way to go
before it gets mature and strong. The market will become strong and mature with
the development of the economic and legal systems," said one
respondent.
"Small investors are always the losers because the Chinese
market is not mature and influenced by many non-market factors. I quit stocks
after losing my hard-earned money, and won't invest again," said
another.
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