Wednesday, December 10, 2014
Sharp Plunge in A-share Market Verifies ANBOUND's Warning
ANBOUND
On December 9th, the A-share market has suffered a serious setback after a continuous unilateral rising for nearly 6 months. Previously, ANBOUND had analyzed the unsustainable super-exponential growth, and warned of a drastic drop (see the Chinese version of Financial Times on December 8th). Judging from current situation, previous growth has come to an end and A-share market is entering an era of fluctuation. The best prospect would be A-share's "soft-landing" in wake of a rapid rising through steady rising accompanying with adjustment; and the worst situation would be with further deteriorating economic fundamentals, high market expectations can’t be supported by real economy and bubble burst. While we certainly hope to see the former prospect, the possibility of the latter should nevertheless be watched out.