2011 Chinese stock market: Opportunities amid instability
Write:
Allighiero [2011-05-20]
The Chinese mainland's stock market had an unstable year in 2010. Analysts expect this trend will continue in the new year, but there will be fresh opportunities for growth.
40-year-old Jin Xinmin has been trading stocks for more than 10 years. Over the past year, Jin's investment yield exceeded 30 percent. That's not a big figure.
But to put things into perspective, consider this: the Shanghai Composite Index fell by more than 14 percent last year, and more than half of its investors lost money. In light of all that, it seems Jin fared quite well.
Jin Xinmin, stock investor said "My investment decisions are based on policies at home and abroad. As there were no major domestic opportunities, I was relatively prudent in investing."
After an unsatisfactory 2010, analysts expect the mainland's stock market will remain instable in 2011. That's due to the impact of inflation, and China's recently-adopted prudent monetary policy. But some see opportunities in the year to come.
Qin Xiaobin, Chief Researcher of Galaxy Securities said "If inflation can be fully curbed, or if inflation doesn't go beyond expectations, it would be a great opportunity for some stocks that rise periodically."
Analysts are advising investors to pay attention to sectors that could benefit from industry-specific government policies, including telecom equipment manufacturing, construction and property and retail.