介绍:
Zhao Yang: Victor so what are the main factor behind yesterday’s market plunge on the mainland and what caused this decline?
Victor Gao: There are several ways to look at it. On a Marco-level there are all kinds of negative economic information. And I think this caused a negative softening of the expectation of the economy in becoming year or so. This provided the background for the stock price collapse yesterday. From a technical point the introduction of the circuit breaker which worked for the whole month is actually another reason. The circuit breaker worked against the background that each listed share would suspend its trading if it goes up or down by ten percent anyway. So in a sense it’s a kind of a double insurance.
Zhao yang: And Baocheng actually what we talked about yesterday, the main factors behind the market plunge or slump we talk about it both from the technical perspective as well as the macro-economy factors some said the down bid market sentiment stemmed from weaker than expected manufacturing activity in December. And a steep fall in the Yuan exchange rate on the day. How do you see this macro-economic factor playing role in yesterday’s marketing slump?
Liu Baocheng: I think the most important indicator would be the purchasing index in the management circle which is the PMI. It has dropped by a continuous basis. So far the drop was 0.4 percent which is far below the benchmark of 50 percent. That’s the general economic picture and if you look at the real economy side of it at the manufacturing activity its very depressive and that really caused a whole chain reaction. Down to the extraction industry and to also many other related areas. Another technical reason is really the anti-sort of reaction toward the circuit breaker because people were not used to it and it is newly introduced, and that really sends a strong signal to the investors that now the economy and the performance and the stock is down already. Another one that I view with mixed comment…Because China is going to shift from the approval system into the registration system for the companies to IPO and this policy is going to be rolled out in March so therefore people are having hope that why don’t I keep more of the money to bet on the new options so therefore they are rather sensitive with this type of operation and then they would like to wait for more opportunities
