1. LINE

      Text:AAAPrint
      Economy

      Overseas investors still wary despite a strong rebound

      1
      2015-07-07 08:52China Daily Editor: Si Huan

      Overseas investors are still cautious toward A shares despite a rebound on Monday, as international fund managers warned the A-share market may continue to slide due to expensive valuations, and disorderly deleveraging may tighten liquidity.

      The Shanghai Composite Index rose by 2.4 percent and the large-cap CSI 300 surged by nearly 2.9 percent on Monday, after the government announced a series of market stabilization measures during the weekend. The Shanghai Composite Index has tumbled nearly 30 percent in the past three weeks on concern leveraged traders are liquidating bullish bets as equity valuations exceeded levels seen during the country's stock market bubble in 2007.

      Despite the rebound on Monday, foreign investors turned net sellers of 18.45 billion yuan ($2.97 billion) of A shares through the Shanghai-Hong Kong Stock Connect program, the highest sell trade value since the link started in November.

      The northbound trading balance was 26.38 billion yuan, representing 202 percent of the 13 billion yuan daily quota, meaning the sell trade value was larger than the buy order value on Monday.

      These two data indicated overseas investors are cutting their exposures to A shares by capitalizing on the A-share market rebound.

      "We are urging investors to sell mainland brokerage shares when the A-share market rebounds somewhat in the coming days," Bank of America Merrill Lynch said in a research report. "The market appears very expensive to us. We assess that there is still a fairly high chance that the market may fall sharply at a certain point over next few months."

      Liu Ligang, chief economist for greater China at the Australia and New Zealand Banking Group Ltd, said: "The market should be vigilant on the second round effects of the stock market slump. As margin trading has surged in the past few quarters, the deleveraging process, if it takes place in a disorderly manner, could tighten market liquidity. Commercial banks could even refuse to lend to the interbank market due to liquidity concerns over counterparties such as securities houses. Banks would become more cautious in lending to companies, especially to those with big exposure to stock market."

      The central government announced a series of measures like halting initial public offerings in a bid to rein in the recent A-share market rout triggered by excessive margin lending.

      HSBC Holdings Ltd's Hong Kong/mainland equity research head Steven Sun Yu said: "Policy support could prevent further sharp market falls; yet we think investors likely will sell into rebound in order to lower their leverage."

      But Sun said that there is no need for panic because A-share listed companies' cash flow is improving and earnings revisions could turn positive in the second half of the year.

      "In a challenging environment, A-share companies have become more prudent on expenditure, cutting back on investing for the future as well as trying to cut unnecessary expenses. The effort of rebuilding their balance sheets has moderately improved A-share companies' cash positions," Sun said.

      Related news

      MorePhoto

      Most popular in 24h

      MoreTop news

      MoreVideo

      News
      Politics
      Business
      Society
      Culture
      Military
      Sci-tech
      Entertainment
      Sports
      Odd
      Features
      Biz
      Economy
      Travel
      Travel News
      Travel Types
      Events
      Food
      Hotel
      Bar & Club
      Architecture
      Gallery
      Photo
      CNS Photo
      Video
      Video
      Learning Chinese
      Learn About China
      Social Chinese
      Business Chinese
      Buzz Words
      Bilingual
      Resources
      ECNS Wire
      Special Coverage
      Infographics
      Voices
      LINE
      Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
      Copyright ©1999-2018 Chinanews.com. All rights reserved.
      Reproduction in whole or in part without permission is prohibited.
      主站蜘蛛池模板: 九月婷婷亚洲综合在线| 免费高清小黄站在线观看| 欧美色欧美亚洲另类二区| 亚洲日韩乱码中文字幕| 亚洲精品色播一区二区| 日韩a毛片免费观看| 在线观看免费黄网站| 一级毛片免费不卡在线| 免费毛片在线看片免费丝瓜视频| 女人18毛片水最多免费观看| 奇米影视亚洲春色| 亚洲一区在线观看视频| 野花视频在线官网免费1| 91免费国产精品| 国产女高清在线看免费观看| 亚洲国产精品嫩草影院在线观看| 亚洲一级毛片在线播放| 免费H网站在线观看的| 亚洲成a人片在线观看国产| 内射少妇36P亚洲区| 亚洲AV无码专区在线厂| 最近的中文字幕大全免费8| 亚洲成人高清在线观看| 大地影院MV在线观看视频免费| 免费观看的a级毛片的网站| 国产亚洲成在线播放va| 福利免费观看午夜体检区 | 在线免费观看国产| 亚洲精品熟女国产| 免费精品久久天干天干| 亚洲人成电影在线天堂| 精品国产免费人成网站| 免费毛片在线看片免费丝瓜视频| 亚洲经典千人经典日产| 中文字幕无码精品亚洲资源网| 亚洲国产综合AV在线观看| 亚洲精品线路一在线观看| 蜜桃传媒一区二区亚洲AV| 激情97综合亚洲色婷婷五| 99精品视频在线观看免费专区| 亚洲欧洲成人精品香蕉网|