Now the Chinese stock market (Shanghaisecurities composite Index) is wandering around 2800. Ups and downs in stock Ahas already threatened stock holders for quite a long time. Where is the bottomof it? If you look at Chinese stock market carefully, you’’ll see that you canfind no reasons in its ups and its downs. When there is a hot point created byChinese government’s policy, it goes up quickly. It is something like the indexup to 4300 last year. Seemingly, ups and downs of stock market are totallycontrolled by the government. However, sometimes, after the government releasedsome exciting news for stock market, the index was still down. Unfortunately,it is not like the oil price, which is totally controlled by the government. Thegovernment’s recipe doesn’t work in stock market.
What’s wrong with Chinese stock market? What should Chinese stock marketlearn from the mature markets? Do you have any good ideas?