Thursday, July 30, 2009

Bad signal at China

China equity market only allows those specific funds and rejected individual foreign investors buying. This type of market maybe can named semi open finance equity market. So, the funds usually inject to Hong Kong and through HK to invest.

Long term, that is unhealthy for equity market develop. Like Malaysia, heavy weight listed company in KLSE equity market controlled by government. Foreign Investors classify it as unfair game. So, you can see FDI lower than others countries.
When equity market transaction mainly depend on local funds finally bring unfair. Like ASB funds every year can distribute about 20% dividend. The only advantage is, you are easy to capture the movement of the share. If you can make money from KLSE equity market, it does not means you are a good trader. Because you opponent party in klse market just a normal investors. In international and development market, the movement of the share price is totally difference. Skill of manipulated of share in Malaysia equity market do not suitable use at others countries.
The china equity market rally depend on their GLC company. The huge funds awarded by government to them and their speculator in shares and properties market. Malaysia also same, but ours intelligent public servants spend money on unnecessary things. So, difference approaching the funds bring difference effect.
Malaysia market will see 980 points soon. please trade in carefull and patient.

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