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Friday, July 31, 2015
Why does Chinese stock market rise and fall sharply repeatedly
ANBOUND

This week, A-share experienced sharp fall again. Anbound's economist Zhong Wei pointed out that the volatile stock market in China is caused by the slow reform in the economy, and the marketization’s investors show lack of confidence in the efficiency and reform direction of the economic performance of state-owned and state-holding shares. To stabilize the stock market, the reform of state-owned economy is compulsory. The solution of financial difficulty and the stock market dilemma, as well as the main measure to allow the market playing the key role of resource allocation is the continuously mass-selling of the state-owned shares.

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