If you look at today's market

If you look at today's market

Posted in the China Forum

China versus Japanese

Potomac, MD

#1 Nov 6, 2013
Japan's market is gaining 60%...

U.S market is gaining 20%...and at life time high..

India's market is gaining 10%...

China's market is gaining 0%...

I believe China is facing rough time and will face rougher time in years to come.
The CCP is DYING

Surrey, Canada

#2 Nov 7, 2013
Yes, the CCP facade of propaganda lies and dodgy statistics is crumbling in the face of problems too big to hide.
Snowflake

San Francisco, CA

#3 Nov 8, 2013
Last ten years China's market has gained over 1,000%.
Andrez Lopez

El Paso, TX

#4 Nov 8, 2013
Snowflake wrote:
Last ten years China's market has gained over 1,000%.
With a stoke of your pen, you have corrected the posts of

'Chinese versus Japanese' and

'The CCP is DYING'
Snowflake

San Francisco, CA

#5 Nov 8, 2013
We all need to tell the truth. with the last two idiot prezs, Bush and Obama, we don't need enemies.
America is going down, Obama's popularity rating has gone down to 37%.
CCP are LYING LOSERS

Surrey, Canada

#7 Nov 12, 2013
Too bad the FACTS show NO GAIN AT ALL in CCP China's phony markets, huh?

Here:

Shanghai Stock Market Shows No Ten-Year Gain

By Zhang Jinglun
Epoch Times Staff Created: January 4, 2012 Last Updated: January 9, 2012 .

Amidst a lot of noise about China’s high-speed economic growth, the Shanghai stock market has returned to where it was ten years ago: On Dec. 29, 2011, Shanghai A Shares closed at 2173.56, which is lower than its highest point of 2245.43 in 2001. Investment costs, inflation, and the manipulation of the market have given investors a raw deal.

Funding State-Owned Companies

The purpose of an IPO (initial public offering) in mature markets in the United States and Europe is to provide funding for successful or promising companies, while rewarding shareholders for their investment.

The stock market in China was established with the aim of obtaining funding for state-owned companies, regardless of their performance or promise. On July 15, 1999, then-premier Zhu Rongji proposed during a meeting on the economy with provincial governors and ministries of state departments, to implement three plans to help state own businesses to get out of difficult financial situations, one of which was to gather funding through IPOs.

IPOs have accounted for the explosive growth over the past decade in the Shanghai exchange’s total market value, although the price of the stock market did not increase.

....
CCP are LYING LOSERS

Surrey, Canada

#8 Nov 12, 2013
...
According to data from Juling Information Technology Co., Ltd. in Shenzhen, there were 1073 listed companies in the Shanghai Index ten years ago with a total market value of US$688.2 billion. Now there are over 2300 companies with a total market value of US$4.2 trillion.

In the past three years, the Shanghai index collected US$146.37 billion through IPOs, 56 percent more than the U.S. stock market and 115 percent more than the Western European markets. Even during the continuous bear market of 2011, there were over 250 IPOs.

ROI Near Zero

In the past ten years, prices inflated greatly in the various commodity markets in China. Take pork for example, its price increased from around 6 yuan/jin ($1.25 dollar/pound) to 16 yuan/jin ($3.34 dollar/pound), an increase of 266 percent. Compared to gold, silver, or crude oil, the Chinese Stock Market has the worst return on investment (ROI).

The international gold price at the New York stock exchange closed at US$272.3/ounce on June 15, 2001. On Dec. 13, 2011, the gold price closed at US$1666.8/ounce; a 10 year increase of 612 percent. Silver increased from US$4.4/ounce on June 15, 2001 to US$31.4/ounce on Dec. 13, 2011, an increase of 714 percent. Crude oil increased from US$28.51/barrel on June 15, 2001 to US$98.2/barrel on Dec. 13, 2011, a 10 year increase of 344 percent.

The net price increase of the Chinese stock market is 0 percent, which means the average nominal profit over the past ten years is 0 percent. When inflation, the stamp tax and other service costs are considered, investors are getting a negative return.

On Dec. 13, an experienced stock investor Mr. Chen told Changjiang Daily reporter,“The Chinese stock market has forced investors to do speculation. The theory of long-term-value gain is always a tragedy for Chinese stock investors.”

....
CCP are LYING LOSERS

Surrey, Canada

#9 Nov 12, 2013
...
Few Dividends

Dividends do not make up for the poor performance of the stock price for the average investor.

According to statistics from the Securities Institutes of Fudan University, from 2005 to 2009, the companies that were able to give out dividends to investors were respectively 45 percent, 50.22 percent, 51.85 percent, 52.35 percent and 48.52 percent of the total listed companies.

In 2010, among 2175 listed companies, there were 117 companies that had a financial loss, but there were 798 companies that did not give out dividends on stocks. Additionally, as of the end of 2010, there are more than 414 companies that have been listed for more than 5 years and have not given out any dividends, including 136 companies with a profit.

According to an Economic Information Daily report in September, there are cumulative cash dividends of US$284 billion (after the dividends tax) in A Shares in the 21 years from 1990 to 2011. The average individual investor doesn’t hold many of the A shares. According to industry estimates, the cash dividends received by normal individual investors should not be more than US$85 billion. But the stamp duty and trading commissions that were paid by individual investors were more than US$158 billion in these 21 years according to China Security Regulatory Commission (CSRC).

The dividends were not enough to cover the cost of trading stock.

Market Manipulation

On Dec. 9, CSRC reported the biggest-ever stock market manipulation case. This case involves a transaction amount totaling US$9 trillion, 552 stocks, 8 investment consulting companies, 9 security-related TV programs, 10 stock investment houses, and more than 30 stock analysts.

According to a Shanghai Securities News report, the former president of the financial securities firm Guangdong Zhonghengxin opened 112 bank accounts and 145 securities accounts at 44 securities companies in the name of more than 70 individuals, and mobilized more than US$315 million to buy pre-selected stocks.

Related Articles
◾Peking University Professor Says China Reform a Dead End
◾Stock Manipulation in China Underscores Investment Risks
Afterwards, the firm contacted stock investment companies and more than 30 stock analysts, recorded programs recommending pre-selected stocks, and bought time slots to air the programs on TV. After the broadcast of the TV programs, dealers sold the pre-selected stocks quickly to make a profit.

An analyst from China Merchants Securities who prefers to remain anonymous told The Epoch Times that this situation is not rare; there are even more funds and bigger teams involved in manipulating the stock market in China.
CCP is DYING

Surrey, Canada

#12 Nov 13, 2013
Snowflake wrote:
Last ten years China's market has gained over 1,000%.
No, it's ZERO.

With a "stroke of your pen" you have proven yourself to be a liar and a fool....

"Amidst a lot of noise about China’s high-speed economic growth, the Shanghai stock market has returned to where it was ten years ago: On Dec. 29, 2011, Shanghai A Shares closed at 2173.56, which is lower than its highest point of 2245.43 in 2001. Investment costs, inflation, and the manipulation of the market have given investors a raw deal."

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

China Discussions

Title Updated Last By Comments
Are Chinese Barbaric? (Nov '07) Wed Jynxie 693
many filipina are slut, cheap, backstabber and (Jul '13) Aug 23 Poscer 17
United States Crushes China in 2016 Summer Olym... Aug 22 Leonard 68 1
News The Chinese admiral who spread Islam across Sou... Aug 21 Khan 2
Are Asians Inherently Smarter? (Apr '12) Aug 19 Yourhusband 130
how would you destroy china? :d (Jul '12) Aug 16 Free Tibet 1,705
News 25 years on, no fading of Tiananmen wounds, ideals (May '14) Aug 15 JUNE FOURTH MASSACRE 130
More from around the web