From: Fund China

The recent stock market to the many individual investors a very practical lesson. “Fund Investment reasonably expected from the beginning,” This is the professional organization of appeal again. For the implementation of regulatory bodies for investors in the direction of education, At present, AIG-Huatai with the Bank of China to launch an investor education as the theme of the event. Because of the recent stock market adjustment and the strong shocks, trade on investor education and create an atmosphere of rational investment all the more necessary.

Since the beginning of the end of last year, the outbreak of the market seems to have made investors forget the lessons from the past, when everyone arrived, with you the market has opened a bloody joke. Participants of AIG-Huatai positive growth fund managers Qin Lingsong, said : 2006 A-share market vivid atmosphere raging for many fund investors earned big money, in fact, Fund investors see that the majority of the 2006 Chinese fund market performance, from the global view is a special case. Funds receipts worldwide reach 100% above the year only a handful.

The stock market has experienced two quarters of the rise accelerated after the emergence of a whole high valuation and risk accumulation phenomenon. Taken by the government such as increased stamp duty on stock transactions to accelerate quality overseas listed companies to issue A shares QDII investment to expand the scope of a series of measures. From a policy direction, the short term impact on the A-share market to the negative factors increased. Market operation rules require the A-share market to a modest adjustment to the future development lay a more solid foundation.

Currently, high market valuations, the Fund on how to seek the relative safety of investment is a marginal understanding of the times of the town. AIG-Huatai professionals that, regardless of what the market situation, Fund investment in a basic idea should not be forgotten, neglected, the Fund’s investment compounding effect of time is staggering, a long-term investment in fixed regular form of investment to achieve large gains for little money to the utility, Tang Bing also the risk of fluctuations, the long-term economic growth of sharing the proceeds.

Qin Lingsong that high valuations in the market environment, institutional investors can use index futures lock systemic risk, to be more energy on the industry and explore the value of units, the market’s overall pricing efficiency will it improve, “Pareto Law” may re-emerge. Meanwhile, selected with continued growth of quality companies is an effective long-term investment strategies. It is expected that with the growing maturity of the market, enterprises intrinsic value of the difference between the market differentiation will be further strengthened. The survival of the fittest is the eternally unchanging market operation rules. From the perspective of industry segment, we are optimistic about the financial, real estate, equipment manufacturing, retail and other commercial sectors.

Copyright Fund China 2008.

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