What Chinese Stocks Are Senstive to Index?

Discussion in 'Trading' started by qll, Apr 4, 2007.

  1. qll


    It is very interesting that 85% of the chinese stocks are up and down with the index. That means all traders are watching the index closely. In US, unless the index is up or down by 1%, nobody cares.

    What can this tell you? Chinese investors are more like gamblers, they speculate more than they analyze the individual stocks?
  2. I couldn't resist to comment on Chinese market; the truth is that there is little of trust in it, highly speculated market because all its numbers are not accurate as it claims to be, everyone watch the market markers very closely.
  3. blast19


    Someone on this board stated that they read(I know this is a stretch) the Chinese Government owns about 75% of the stock in the market. I'm not sure the truth of this claim or if there is a way to back it up...but it would make sense considering the way the Shanghai Index goes up 1%/day.
  4. qll


    many companies are cross owners of each other. company a has company b's shares, b has c, c has a.

    government ownership is dropped, but why do you care? since those shares are never traded. more like a class b voting shares.
  5. qll


    before 2004, most books are fake. now books are clean!
    but i do find most stocks traders don't know anything about what they buy. the only thing is to chase the hot stocks in the market.
  6. blast19


    Chill out bumble bee...I didn't say it.

    Where does your info come from? Uh..have you ever heard of float? If the govt. owns 75% of the shares of companies and their float is only 25% of what they might otherwise be, that will usually effect a stock's volatility and price in reality...do you know something else? :D
  7. Exactly; Chinese market has this strange structure of multiple shares (ownerships) for each company. And regular speculators couldn't know what they are buying into.

    Why do you think Chinese government had finally chosen market economy with its communism doctrine governmental structure? The first thing about communism is to stop private ownership.

    If you ever have a chance to talk with any entrepreneurs in China; they will tell you that is extremely difficult for them to raise any capital for growing their companies without any level of government to back you up.

    if you try to raise fund by promising high yield without government consents; they will throw you into jail. Beside there is no Junk Bonds market in China too.

    So; Buyer beware. Good Luck.
  8. Besides asians are gambling lovers this has nothing to do with it.

    Market going up 80/100% in a few months and the people go freak, here, on china, africa or anywhere, that's classic human behavior.
  9. qll


    it is weired to trade in china. because if my holdings are not up more than index, i know next time when index is falling, my holdings will fall more.

    you have to know inside information. you have to know who is buying whom. there is a small circle of people they share inside news. stocks are up for no reason. it is pure supply and demand. if somebody wants it to go higher with a lot of cash, it will.

  10. what about comissions?

    which fees do you guys pay on china stock market?
    #10     Apr 4, 2007