Bullish A-Share & B-Share Market Expected: Financial Expert

China's A and B share markets will continue a booming trend this year, said Zhang Liping, manager of the China Securities Research Department of the Hong Kong & Shanghai Banking Corporation (HSBC).

Speaking at a seminar on the HSBC financial market and new economy, the financial expert said there will be new structural development in China's stocks market this year and opportunities will be produced for many listed companies by China's expected high-speed economic growth and the further reform of State-owned enterprises (SOEs) and banks.

The expert based her rosy forecast of the stock market on the following elements:

  • 1. The A-share market will be an important channel to raise money for large-sized domestic and overseas Chinese enterprises.


  • 2. China will continue to push forward the reform of SOEs the government need a brisk stock market to realize its plan to reduce SOE shares held by the State..


  • 3. The government will introduce the open-end funds which will involve foreign capital and in turn, stimulate market demands.


    • But compared with the B-share market, the expert points out, the A-share market will be of greater risk due to its high profit margin as well as loopholes in the current stock market supervision mechanism.

    The investors are suggested to choose the B-share enterprises as their long-term investment targets.

    The HSBC expert also proposed to invest heavily in telecommunications, financial services including banks, insurance and securities, energy and chemical industries, science and technology excluding the Internet, and real estate sector.



    Source: China Daily


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