After a recent series of selldown with element of discrimination and panic going on with the China stock market sees a light at the end of the tunnel as the Shanghai Composite Index, SSE, closes slightly red ending mixed on 12 August 2008. Many people believes that the selling has yet to be over as more and more negativity looming above China markets like SSE and Hang Seng Index, HSI.
Crude price has reasonably ease more or less. Gold has fallen incredibly from its all time peak. What is next and where is the value going to be. As the awakening dragon loses steam after a very long and extended bull run, China markets has see a very steep dropped to its 19 month-low. This has presented a very good buying opportunity.
"Even after you modify China’s growth rate down, it’s still showing very strong and solid growth forecasts in the coming years," Mark McCombe, chief executive of HSBC Group Investment Businesses, said in an interview in Shanghai.
"The upside should be better than the downside at the moment and we don’t think we have much further to go," he said of the market’s slide.
On the long term perspective, this is a very good opportunity to dollar cost average or buy China stock in view with China’s robust growth. The recent fall has seems to be exhausted as it seems so ending with a mixed closing on 12 August 2008. Down side is really limited. A strong rebound is likely the following day, however it is also somewhat dependable on how Wall Street closes its trading session.
Above is of personal opinion and not at all an inducement to trade.