Once the hot money into the stock market, impact on China’s stock market is enormous, its short-term gains the decision is bound to the speculative nature of China’s stock market fluctuations, there have been a roller coaster and eventually makes it fall prey to hunt by hot money to public investors.

　　Report from the people’s daily · overseas edition reported, this year, the country Fest this control in the property market, according to the National Bureau of statistics data released, in September there was a 70 per cent from the city average of near-zero data inflection points. Because some first-tier cities property market downturn, there is even room set parabolic phenomenon.

　　Once housing prices inflection point real there, hot money will the mass withdrawal from the market? Will these after the evacuation of hot money into the stock market?

　　Property market regulation causes hot money withdrawal

　　”Recent signs that foreign investment include the hot money leaving the country is on the rise. “Well-known financial commentators pointed out when interviewed by this reporter Yu Fenghui, United States of Blackstone Group recently from China for the first time real estate investment (commercial property) in the withdrawal. In addition, in September decreased $ 60.8 billion foreign exchange reserve in China rare, this is a one-month drop in for the first time in 16 months, while the September monthly trade surplus of us $ 14.51 billion, note September reserves dropped us $ 60.8 billion are foreign divestment includes withdrawal of hot money factors.

　　According to Yu Fenghui analysis, withdrawal of foreign capital include the causes of outflow of hot money, self-help returning us and European enterprises on the one hand, and on the management of China’s property market is not reduced, foreign investors bearish on China’s housing market.

　　Wuhan University of science and technology, Director of the Institute of financial securities Dong Dengxin also share this view. He said in an interview with this reporter, the property market at present faces of shorting on pressure of public opinion, but the Chinese Government is not willing to actually so. Dong Dengxin thought, the best way is to maintain the stability of China’s real estate market, housing prices in a relatively long period of time effect of stagnation or slight decline.

　　Hot money flows into stock markets amid signs

　　Establishment survey data show that from the end of September, the stock accounts rise does not drop, before national day added accounts of the two cities 227,500 families, increase per cent from 8.9%, a 13-week high, rose for two consecutive weeks. Analysis of incremental money started quietly admission in the industry.

　　”Many of whom are part of hot money from the property market following the withdrawal, to enter the Chinese stock market speculation. “Yu Fenghui said, because China stocks are now at the bottom, hot money touches the Chinese Government will not let the stock market crash, the stock market much less crashes. Prior to this, already has changed the international investment bank bearish to bullish, did not rule out for hot money into the stock market to create public opinion.

　　Dong Dengxin believe that hot money into the stock market now is a good choice. But he also stressed that the current index is relatively low, but are still at greater risk, there is still space fell. So, if it is a value-focused investment, long-term investment, now the market is quite valuable. Select a long-term portfolio, while such investment cycle could meet the 3-5. If those speculators, just wanted to make short-term speculation, judging from the current stock market risk, now obsolete.

　　In the view of Dong Dengxin, the current bank deposit interest rates, CPI is high, and the collection of property taxes is still not widely spread throughout the country, prices are not currently a sharp decline, in which case when selling real estate is not a wise choice. Compared to stock market risk, from the current macroeconomic conditions, real estate is still a relatively safe hedging assets.

　　Treat of hot money should drain should not be blocked

　　At present, because hot money in the property market are large, private investment channels would be inadequate, and funding as soon as the withdrawal from the market, it seems difficult to find the right export. “Treatment of hot money, money, should drain should not be blocked. “Dong Dengxin believes that to make the effective withdrawal of funds in the property market, it must be to create a healthy investment channels, in particular, to direct funding to the real economy, blocking drainage is the solution to the problem at all.

　　Dong Dengxin, invoke the fundamental lies to direct private capital industry. First, it is essential, that is to encourage these hand hot money private capital for self-employment, the Government adopted policies, tax and other incentives to help and support, to direct private capital industry. Second, by comparing the specifications of VC (venture capital), with the market economy means, hand the money, but personal strength alone does not make people being self-employed together, to equity financing way of intervention, such funds to the introduction of high technology and new materials, new quality areas such as energy, work together to do business. Dong Dengxin said that these capital works just like a “pregnant women” to be a floating capital eventually hatch into industrial processes. (Zhou Xiaoyuan)

　　Stock market circulation market value

　　A week by 7.21%

　　According to Xinhua News Agency according to the latest data from Shanghai and Shenzhen stock exchanges as of 28th last trading day of the week, Shanghai and Shenzhen stock market circulation market value to 18.4749 trillion yuan, over the weekend (21st) by 7.21%. The same period, the total market value of $ 24.292 trillion reported in Shanghai and Shenzhen stock market, a week 7.26%. Average of the two cities is $ 8.24, one week increased by 7.15%.

　　As of 28th, circulation market value $ 13.5393 trillion reported in Shanghai Stock Exchange, a week 6.81%; circulation market value $ 4.9356 trillion reported in Shenzhen, a week 8.3%. Total market value of $ 16.5329 trillion reported in Shanghai Stock Exchange, a week increased by 6.83% to total market value of $ 7.7591 trillion reported in Shenzhen, a week 8.17%.

　　This week in Shanghai and Shenzhen stock market start dull, several large stock index are breakdown has last week of low, then invasive this year yilai of low, then real estate unit first warmer, and by overseas stock market rose stimulus, in Shanghai and Shenzhen stock market also expand in recent days rally, two cities 22 a stock plate all recorded was week increases, which, spread, and service, and real estate, and building, and metal and mining 6 a plate more ran win market, its week increases are over 9%.