Stocks Long-Term Outlook Rosy

By Xiao Zhang  |   2008-7-18  |     NEWSPAPER EDITION

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CHINA'S stock market has a rosy long-term prospect as the nation's economic growth is likely to stay in the fast track, Li Xiaochao, a spokesman for the National Bureau of Statistics, said yesterday.

In the short term, the stock-market performance is likely to go in the opposite direction as a country's economy grows but over the long term they should move in the same direction, Li said.

China's benchmark Shanghai Composite Index has lost by more than a half this year although the country's economic growth continued to exceed 10 percent for the first half of this year.

Some industry analysts have argued that the mainland stock market has entered a bearish cycle after a bullish run in 2006 and 2007, which boosted the benchmark barometer by nearly six fold.


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