Investors stall on shift into shares

Source:Global Times Published: 2014-4-23 21:23:02

Looking ahead over the near- to mid-term, analysts expect China's stock market to heat up as the country's property market starts to cool.

At present though, this "seesaw effect" has yet to materialize and both markets remain sluggish. Housing prices in several second- and third-tier cities are softening. Out of a statistical pool of 70 major Chinese cities, 56 saw new home prices rise month-on-month in March, down from 57 cities in February, according to the National Bureau of Statistics.

Meanwhile, things haven't been much better in the A-share market, where the Shanghai Composite Index was down by more than 2 percent for the year-to-date as of Monday. Many have pointed to this continued weakness as a prime factor propping up the housing market. Investors will naturally gravitate toward profit opportunities and China's relentlessly rising housing market has provided many with a safe place to park their capital.

Whether Chinese investors migrate out of property or not, all investors need to respect market principles. Regulators need to improve laws and regulations in order to help both markets develop in a healthy direction.

The author is Zhou Xiaoyuan, a media personality.

People's Daily

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