Ascribed the reason the stock market

 The reasons for China's stock market shot up
Dean of Economics, Fudan University, Professor of Finance Sun Lijian
after the Lunar New Year holiday, China's stock market out of the wave amplification with volume rally, as did the Chinese economy as early as possible out of the shadow of the global financial crisis,UGG bailey button, the first into the recovery phase of the desire to bring a ray of sunshine. While people at this stage side, or from the industrial production index, whether the situation is shrinking from the price point of view, or from the tight liquidity situation is observed, there are unprecedented in the history of the deteriorating situation. Even in the Festival of China, the deflationary pressure rise rapidly, an unexpected disaster of drought in northern China's agricultural development is also on the full and effective implementation of the program has brought new challenges. However, the Chinese market has not been the impact of external market stumble endlessly, again staged a the appear in the recovery of economic fundamentals of the market? and such a market and the recovery pattern of the Chinese economy what kind of impact? and so on. In fact, these problems have attracted the domestic policy-making departments, production departments, financial institutions and their the wealth of value and capital markets are closely related to the earnest attention of consumers and heated discussion, because everyone on the Chinese market and economic trends to determine whether a consensus to form in the same direction of the force, will be directly related to the government bailout policies effectiveness, companies and organizations to digest the extent of production and the consequent growth rate of profits, of course, related to the level of consumer wealth and consumer desires. The following, I want to talk about some of his views, for your reference.
First, I think this round of capital-driven market. Although this is the first in the economic fundamentals of the not underestimate its positive significance. It should be said, it is by the operation of the force), while the release of sufficient gravity to push the market value of the energy funds. If society can reach a consensus, the full use of quotes generated by this wave of (China's financial system did not like the U.S. and Europe, because of excessive financial innovation and swallowed our previous ample liquidity), to create in favor of a more favorable market environment for investment and financing, then, this round is essentially the China's economic fundamentals have also been some welcome changes, for example, China's manufacturing PMI index for two consecutive months, a slight rebound in China's banking sector credit growth was accelerated, global banking crisis after the baptism go to the China Banking to the top of the world the good news, etc., but these are government bailout plan in a timely manner and strong financial expenditure the consequences of driving, as well as China's unique market structure brought about by the objective effect However,UGG boots cheap, if we completely change the current severe employment situation, reducing the pressure of excess production capacity and improve the flow of bank credit and asset quality, there are many challenges we face to many. Even so, there have been coming out that we rely solely on the government blood under the prerequisite.
Secondly, we must make full use of capital-driven market conditions and government efforts to rescue the positive interaction between. because the current release of funds in the capital market will help restore liquidity panic destroyed by the investment behavior the price level, and the resulting wealth effect of the market will strengthen people's confidence in economic recovery. The market financing function of the increase, should wait until the stock market and stable value of the center of gravity is raised after a period of time not too late to do in-depth reform (for example, corporate restructuring, the establishment of GEM, IPO's resurgence and other financing behavior), it is a good market for active government policies to rescue the market to digest, is conducive to market confidence and the market price of healthy recovery. until the recovery of market confidence, the regulatory and listing system reform and improve the financing environment for Chinese enterprises to financial innovation, how to increase the intensity again, it will further enhance market confidence as the materials were all will be greatly reduced. In fact, from the current global market performance, trading volume continued to enlarge the capital city brought and did not form, still is still in a stage of liquidity panic, for example,UGGs, the dollar value, oil prices are depressed, etc. afraid to invest, cash is king fears the performance of the stock market can sometimes even with good policies and a brief wave of market, but profit-taking in the cash rate is much higher than the economic good times, the market is volatile and often anxiety rises and falls. In fact, investors are good policy is based on (information)-oriented, short-term inhalation of conduct further exacerbated market volatility. In this sense, China's stock market appears first wave of capital city,bailey UGG boots, full-year revenue decline of their negative effects. If the current market is really such a strategic investment to the higher, then we should cherish even more market created by this wave of improvements, can not let the momentum of the stocks, the fundamentals of data due to late slump and cool down. If the and good economic data as a backup, will further drive up prices, creating a virtuous cycle mechanism, until the recurrence of negative news even if the unshakeable ; bull glorious era. But, even so, we can not bring future inflation pressures as the dominant policy objective today, and, in the current deflation and liquidity panic pattern, moderate inflation and price rise of the bubble may be more good than harm To this end, early control injection of scale and reduce the intensity of loose monetary policy could play today are not conducive to the