At least 1 trillion yuan of gray funds forced into stock market

08:15, December 02, 2010      

Email | Print | Subscribe | Comments | Forum 

According to conservative estimates, more than 1 trillion yuan of incremental funds have entered the stock market during the 27 trading days between Oct. 11 and Nov. 16, said Yin Zhongli, financial expert at the Chinese Academy of Social Sciences.

Yin said that the annual increment of gray income, or hidden income, is proportionate with the fixed assets investment scale and GDP scale. As long as the hidden rules in China's business circle do not change, gray income will certainly increase with the growth of the fixed assets investment scale, reaching 5 trillion yuan in 2009, 6 trillion yuan in 2010, and more than 7 trillion yuan in 2011.

Yin believes that the increasing gray funds are being forced to flow into the stock market from the real estate market. There are two reasons why they are "forced." One is the restriction policy of real estate sales released on Sep. 29 and the other is the influence of inflation. Otherwise these funds may become bank deposits.

By People's Daily Online

(Editor:李佳)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion