Chinese shares drop down 5 percent today
Posted on Jul-29-2009· by china investor
Today, chinese SHANG HAI stock marker drop down 5 percent , in afternoon, there are even a 7% drop down happened. At the end , SHANG HAI Index closed at 3266Â which eat the rise up in last week, this is the most drop down in last 8 months.
Before today, a new share listed in SHEN ZHEN GEM, which beenÂ Â pushed to 7 tims of the price of IPO, but today when a huge share –“Chinese Architecture” listed , it’s price drop down the price of IPO, this is chinese market,Â a hot and a cold market at the same time.
Today, PE of Shang HAI is 28 and PE of SHEN ZHEN is more than 40, the price is really too high, because it is far away from the AVG of the global market, although the number of china gdp looks good, but Overcapacity is really a problem need to solved, if the economy of global can not rise again, Overcapacity will begin a big problem for china.
In a short time, chinese shares rise more than 100% , the drop down is a revise for the trend of the first half of year. Investor or Speculation? It seems select Speculation maybe a good choice for short term.
On the other hand, if stock market drop down , maybe somebody which like Speculation will begin speculate house market, it is not a good news for chinese people.