May 9 is not a good day for Shanghai Stock Market. It reached the lowest point of the six years. It closed at 1,130.835 yesterday.
I never invested in stock market in Shanghai, and I have no idea about the stock market. But I know, the stock market in China encountered big problem.
Image in courtesy of Yahoo! Finance
From a normal non-financial major person, the fact I know/heard of (but didn’t confirm) is:
- Most of my friends were losing money in the last three years (from 2002 to 2004), and I didn’t see anyone discuss about domestic stock market.
- People say the prosperity of real estate market in Shanghai may be due to the lack of confidence to stock market
- I personally don’t trust listed companies.
- My friends told me many CEO or big boss of listed company don’t know the stock price of their company at all – they just don’t care.
- Yesterday, I watched a program by Lang Xian Ping, a famous encomiast in China. He called for more stick monitoring of the bad guys in the stock market.
- I heard from radio that recently, there is only one result for any news release, no matter it is good news or bad news from listed companies or the market. The result is: big drop in the stock price or the stock index.
Disclaimer: as I said, I have no idea about stock. The above information were either heard (from TV, radio, my friends) or my personal observation. I have no ability to check whether the facts are correct or not, or the opinion are correct or not. So take it with great caution.