Time to Cool Down

In the past one week, foreign investors have retreated 5.74 billion US dollars from China's mutual funds, despite of both 4.35 % high return in past few weeks and the bullish stock market performance.

Recently, lots of concern have been raised that the stock bubble will blow out soon. Many economists, college professors, analysts from well-know i-banking, and even government officers stand out in front of medias say, "it is time to take action to cool down." However, the stock index doesn't follow their will. Yesterday, Shanghai Composite Index continue to rock, going as high as 4080, another record point.








（Left: SHA Index jumped to a new record point.)











(Left: His stock must rise at that moment.)


My Mom also told me some funny stories on the phone--People can wait for the whole afternoon to open a stock account; non-economics-major college students go to finance classes, and a local newspaper reported that a college students manages a portfolio worth 500,000 RMB (approximately 62,500 US dolloars) for his relatives and friends. Now, he is just sitting in front of 3 LCDs from 9:00 a.m. to 3:00 p.m. (the market trading time) , and does not attend classes any more.

It is time to cool down, probably not only just the stock market, but also people's "one-night-millionaire" dreams.