The second quarter, global stock markets and poor students: China A shares.

<P> Problems in the second quarter accounted for a major European newspaper headlines, but in the long run the global economy is more significant in the three months of turmoil in China and the Chinese economy ─ ─ remodeling. .</ P> <P> 4-6 月 Shanghai Composite Index fell 23% in total, fell to 14-month low, now in a bear market area. .</ P> <P> trading A shares Shanghai Composite Index closed at 2398.37 points on Wednesday, down so far this year total nearly 27%, which is the worst performing major stock markets in Asia, and is one of the world's worst performing stock market. .A shares is limited to a small number of domestic investors and foreign institutional investment. .</ P> <P> Although the gross domestic product (GDP) and double-digit corporate earnings growth, but China's stock market decline. .</ P> <P> reflected in the stock market crash of several Chinese investors worry more profound uncertainties, which Beijing has a number of factors including the effect of the property market cooling measures; the cost of labor rising, the Chinese economy to maintain strong .growth capacity, and impact of RMB appreciation. .</ P> <P> the last few days in the quarter, these concerns surfaced, investors in a continuous decline in six trading days, the broader market fell more than 7% suppression, as investors worried that China is not in the second half .maintain strong economic growth. .Investors also are wary of the Agricultural Bank of China (AgriculturalBankofChinaLtd.) size of up to 23.3 billion initial public offering poor response plan issued in mid-July, earlier this week will be set at an issue price below the expected range. .</ P> <P> CLSA Asia-Pacific market (CLSAAsia-PacificMarkets) FrancisCheung equity strategist in Hong Kong, said that once China has solved the current problems, global investors are expected to increase China-related investment. .But he said, it also yet to time, due to decline in GDP and corporate earnings, and real estate tightening continues, he believes Beijing's real estate tightening campaign is far from over. .The impact of falling stock market may be far and China's A share market closed, the majority of regions in the world is still looking forward to China's strong economic recovery to lead the world when weighed on sentiment. .</ P> <P> story of how the Chinese interpretation of the copper play a major role in the construction of bulk commodities, U.S. dollar and other currencies and the reliance on the strength of Chinese consumers will enhance the impact of global enterprises. .</ P> <P> the short term, some analysts believe that Chinese investors have not fully felt the Chinese stock risk. .They pointed out that many of the national real estate bubble and the Chinese manufacturing enterprises in the threat of labor unrest are just around the corner, some people think that this may be the end of the Chinese factory of the world status of the signal. .</ P> <P> Citigroup Inc. (Citigroup), chief economist for Greater China, said Shen Minggao, although a quarter of China's GDP and corporate data unexpectedly strong, but the real challenge will be exacerbated in the case of uncertainty .how to maintain the data. .</ P> <P> Shen Ming Gao said, we call a word that is prudent;, including us, and now many people do not believe that this rapid growth can be maintained in the second half. .</ P> <P> Shen Ming Gao believes that the biggest risk is that the debt crisis in Europe, the U.S. economy is relatively weak, and the stimulus plan last year, China's own attempt to call back. .He expects annual export growth rate will drop to below 20%, well below historical levels. .</ P> <P> With the end of the second quarter, a new theme, that is, the speed of China's currency appreciation, and stood on the center stage. .Policy-makers in mid-June that they would allow the yuan to break through narrow trading range, the exchange rate will be more flexible. .</ P> <P> Beijing will allow the yuan to appreciate how much, what it means for the stock market, the analyst community is still no unified opinion. .However, after the introduction of policies in Beijing on June 21, investors pushed the Shanghai Composite Index by 3%. .</ P> <P> later, this excitement to concerns about economic growth occurs in a wider scope of Beijing's determination to improve exchange rate flexibility in how the questions are endless. .</ P> <P> optimists say the yuan pegged to the dollar policy of relaxation will help reduce China's export products are a threat to levy protective tariffs, while helping to expand Beijing disposable monetary policy options. .</ P> <P> This allows the Chinese government in dealing with future economic challenges, have greater flexibility. .</ P> <P> investors and governments in China and the global economy looking for signs of the rebalancing, the RMB appreciation can also increase the purchasing power of Chinese consumers. .</ P> <P> others hold a more pessimistic view that China's export industry has faced in rising wages, the case of the global economic slowdown, yuan appreciation the core engine of growth will add more pressure. .</ P> <P> China attempts to cool the overheated real estate market, is also a factor in making them feel nervous. .If Beijing succeeded in cooling the housing prices soared last year, it will diminish, directly or indirectly account for about a quarter of GDP, real estate investment. .</ P> <P> If the real estate bubble burst, household wealth will be reduced, developers, construction companies, home appliance and automobile manufacturers stock prices will fall. .</ P> <P> in this uncertain environment, a group of investors has to do more, and that is the major shareholder in China's internal business. .Macquarie Securities (MacquarieSecurities) equity strategist in Hong Kong, Matthews (MarkMatthews) said that in May, the shareholders of the net for the first time in nearly two years to buy A shares. .</ P> <P> Matthews as the yuan's news is good news, this aspect into account, he said, "I do not want to short China at this juncture." .</ P>.