2010-04-26

Bulls should buy China now

Hot Money May Flee Property Market
Li Youhuan, a scholar at Guangdong Academy of Social Sciences, said that there are clear signs that the flight of hot money from the real estate sector will leave for the stock market, which will be felt in the next two to three months.

"In next two weeks, the stock market will feel the abundant supply of hot money," said Li.

Shi Lei, an analyst at the Bank of China, said share prices will soar in the near future as the funding will flow from the property market to stock markets.
Add to this the effect of currency revaluation, which accompanied the bull run from 2005 to 2007, and a decent run is possible. That is, if revaluation takes place anytime soon.

Update: Shanghai Composite lost 2% today. Where's the hot money?

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