Tuesday, November 23, 2010

Stock involved in the property market

 Involved in the property market when the stock market
ice from a stock market in China since
, which has never been times like this, the introduction of intensive and frequent good news. From the increase in export tax rebate rate to 4 trillion to stimulate the economy plan came out; from 30 consecutive interest rate cuts to come out of financial; from mortgages to real estate speculators to relax to relax; from sound fiscal policy to a proactive fiscal policy adjustments, to the tight monetary policy from monetary policy to moderate the conversion . good news sequential appear dazzling.
government to stabilize the stock market, prop up a very clear idea of the stock market.
But for now, the effect is still limited. in the Shanghai Composite Index in more than 1,700 positions when the good news began to appear dense, but as of this Friday (Dec. 19) close, the benchmark Shanghai Composite Index was only reached 2018.46 points. and the strength of the favorable factors comparison of view, this increase appears delicate and charming. < br> This is mainly due to two reasons result:
First, the size of the non-issue. It is hanging in the Chinese stock market a sword of Damocles, the shares failed to change the size of the non-ban make a correct estimate the consequences of failing to take appropriate measures so that no one can no longer put off his sword, because the matter has not yet taken measures to limit the size of non-selling, have lost the fair, after all, the size of such non- with those of a ban on the heels of the size of the non compared to the number of stock market stability or have a positive effect. Therefore, the size of the non that the sword of Damocles, can only quietly and so its own fall. As the size of non- low cost position, each bounce is a good opportunity to leave their cash. The pressure is enormous. position the size of low and ordinary investors not in a very unfair game, ordinary investors often size of the departure of the bill were non-arbitrage, this situation continue to undermine their confidence. The confidence has always been an important basis for the capital market.
Second, the global deterioration in the subprime mortgage crisis has brought suffering depression and pain, The Great Depression ferocious, and will not soon be over. Soros admits: crisis hit, while the repayment pressure and job stress further restrained the spending power, which makes the recovery of the global economy lost an important engine. lost consumption (particularly the U.S. consumer market) of the engine, causing the world economy has become without a head . rescue measures in many countries, over and over again, continuously changing, and is unable to accurately assess and grasp the situation due. This means that the global economy is expected to be uncertainty, specifically, is very pessimistic.
overseas decline in market demand and pessimistic expectations, also affected China. Customs Department data show that China's total imports in November fell 17.9%, exports fell 2.2%, which is from June 2001 China's exports since the first time down. coastal foreign trade enterprises closed down a large area, causing severe employment problems.
performance of listed companies also plummeted. the one hand, the main results of listed companies in the fall, on the other hand, corporate cross-shareholdings and related investment fell as a result of the market value of the stock market has shrunk dramatically. stock market investors expected future performance of the emphasis often exceeds the performance of real importance, in this pessimistic expectations, under heavy pressure faced by the stock market can imagine.
stock market is a virtual economy,UGG bailey button, but consumption is closely related with the public, in fact, it is the poor long-term accumulation following the crux of the people and the tragic decline of this round of China's stock market caused by the sharp decline in the purchasing power of the people, China made against the sub-prime crisis, in a passive position. promote the economic development of the three carriages: consumption, investment and exports, consumption, already crippled, and the stock market fell further strengthen this incomplete, so that the government introduced a series rescue package, basically still on investments (such as 4 trillion economic stimulus plan, mostly for government investment projects) and exports at the core (such as export tax rebate policy), domestic demand stimulus plan for the flag, famous and No real.
other words, we now introduce the program to address the financial crisis, as domestic demand, short board and greatly limited. or that the idea of this bailout did not really grasp the crux of the mm solution poor people and the establishment of social security issues. This is a worry to the root causes of weak domestic demand. continued deterioration in the external environment, under pressure, the stock market caused by the stimulation of consumer decision-making attention .12 18, the number of Academy of Social Sciences Wang Tongsan, director of the Institute with the technical and economic guest People's Daily, said: capital markets and real estate market is a very important part, so the central economic work conference,UGG boots, and real estate capital markets to maintain market stability and healthy development,UGG boots clearance, this is a very fundamental policy measures.
gave away the secret: decision-making through time for space to order the stock market led to good growth in consumption. However, effective or not, the key depends on policy choices.
In the 4 trillion economic stimulus generated by a positive factor for slowly fading, the decision-making level the focus on the real estate above, trying to have big as this, however, this may poles apart. real estate and stock market with the sexual relationship is in some stage of divergence. For example, today's house prices are still at high levels, compared with nearly 70% have been adjusted for the stock market, real estate bubbles in a very serious, people's expectations because of falling house prices deterioration in the subprime mortgage crisis has become a firm and clear, prices do not fall, the only shoes to people's hearts not really sense the ground. And, now introduced a series of policies for comprehensive real estate vested interests in the shift the risk to the bank provides a convenience. leave the mortgage if the mortgage policy of loosening because of the prevalence of the bank taking over at a high level, will be the rapid increase in bad debts and a big hidden, thus restricting the future of China's economic recovery, a terrible side-effects. < br> in order to maintain high prices to drive up the stock market is futile. The housing downturn in volume, not enough tax incentives to encourage it is not the policy is insufficient, the key is price is too high, too far off the real purchasing power of people, ordinary people to buy can not afford. In this case, the best approach is to flow, lower prices, on the one hand, you can activate the real estate turnover, for 57 industries can continue to play a stimulating role, not as they are now in a dire strait state. On the other hand, can be part of the funds freed up for people in other areas of spending. From this perspective, falling house prices, more conducive to spending more conducive to economic growth,UGG boots cheap, more conducive to restoring the confidence of the stock market. < br> Link:

No comments:

Post a Comment