This article explained that the Chinese government are allowing the people to buy stocks with borrowed money, and they can even use their house as collateral to buy stocks. This move is aggressive and not sustainable.
Source: http://www.bloombergview.com/articles/2015-07-06/chinese-imitate-western-steps-with-stock-market-interventions
Although Goldman Sachs and DBS CEO said that the china markets are not in a bubble yet, it could probably be the case of easing the public about the dangers of the China market.
Source:
http://www.smh.com.au/business/markets/goldman-sachs-stays-bullish-on-china-stocks-20150708-gi7cjs
Today, Chinese government told China state-owned firms not to sell shares despite stock market plunge with hope to stablise share prices.
Source:
http://www.straitstimes.com/business/companies-markets/china-tells-central-government-owned-firms-not-to-sell-shares-as-stocks
If there is too much reliance on the government to influence share prices, markets may move up or down corresponding to government decisions rather than fundamentals.
As of now, i think that retail investors should still look into SGX stocks. Although SGX had reported failling liquidilty in the markets. However illiquid SGX may be, it based in Singapore and supported by a stable currency.
As SGX is highly regulated by MAS, it is for now safer to invest here than China.
China's exports picked up unexpectedly in June but imports tumbled again, reinforcing expectations that the government may further loosen policy to lift the Chinese economy after a recent stock market rout.
ReplyDeletemost of the people now interested in the investment in sgx market. for the help of this type of people Singapore stock recommendations is proved good.
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