Stocks News
- Bull to rest in 2008: researcher
Date: 5-Dec-2007 Sources: (Shenzhen Daily)
THE mainland stock market will not resume its bull run next year, but its long-term outlook is positive on the back of the country's strong growth, a researcher said Friday.
The benchmark stock index in Shanghai has fallen 20 percent from a record high scaled last month but it has still more than quadrupled from its 2005 lows.
Policies aimed at using energy more efficiently and protecting the environment, along with rising labor costs, had changed the picture for domestic companies, Zhu Mingchun, a National People's Congress (NPC) researcher, said.
'From a short-term perspective, it is not practical to expect listed firms to earn as high profits as they have been doing,'he said.
'So next year, the stock market will not be as good as this year, though it could hit 10,000 points in the future,'said Zhu, chief researcher on the financial and economic committee of the NPC.
The recent downturn had squeezed some air out of bubbles in the market, bringing it down to a more reasonable level, and authorities were unlikely to take harsh measures that would deflate it much further, he said.
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