Stocks News
- Editorials say stock trend still positive
Date: 5-Jun-2007 Sources: (Shenzhen Daily)
IN an apparent attempt by the authorities to ease jitters in the stock market, the country's three major business newspapers carried editorials yesterday saying the market's positive trend had not changed.
'The adjustment in the securities trading stamp tax is just a ripple in the development of the market, and does not change the market's positive and stable development trend,'the Shanghai Securities News said in a front-page commentary.
'One can say policy has changed, but not the trend.'
The China Securities Journal and the Securities Times, carried similar front-page editorials.
The stock market has swung wildly since last Wednesday, when authorities tripled the stock trading tax in an effort to cool speculative activity.
The main Shanghai index is down 7.7 percent from a record intra-day high hit Tuesday, though it remains up 50 percent from the start of this year.
The Shanghai Securities News said huge increases in stock turnover in recent weeks had shown trade was becoming speculative and irrational, so authorities were using the tax hike to make investors behave more reasonably.
But it said authorities had no intention of damaging the market, which would continue to benefit from many factors including strong economic growth, appreciation of the yuan and demand to invest personal savings.
'We have no reason not to be optimistic about the medium and long-term development of the capital market,'it said.
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