By: Mr Chiang
Compiler: http://www.fundcn.org

Yesterday platter by nearly 4%, the fund managers generally calm reaction. said the short-term impact of market adjustments to the long-term change is not a good trend.

Short-term adjustment is a normal situation

Fund manager Mr Chiang said that the market in the short-term adjustment is a normal situation. The market fell yesterday from two main areas of impact :

While the market expected the recent interest tax will be reduced. Mr Chiang that the interest tax adjustments of the market will not have much effect, but also short-term impact. “Interest tax reduction deposits equivalent to an interest rate increase, the market is not worried that the deposit interest rate increases worried that the loan interest rate increases. “He believes Judging from the current situation, short-term loans increased the possibility of interest does not seem to be too much.

The second aspect is the impact of the formation of the national and foreign investment companies will soon be issued special bonds Since the special bonds issued by specific and targeted way has not yet been determined. its market to a more pessimistic expectations. “If the market directly, issued on the impact of mobility is still very much,” Mr Chiang said. “The increase is equivalent to 10 times the deposit reserve.”

But Mr Chiang that the issue of special treasury bonds in the funds are only the surface of certain impact on the market. But rising long-term market based on the fundamentals of listed companies improved, and the current performance of the company’s growth is still the situation can be anticipated.

Mr Chiang said that based on various factors affecting the integrated themselves on the short-term market with a neutral view, The next two months are more likely to show the trend SEA concussion. To 3-6 on the market, Jiang said the levy still read. As for the actual operation, will maintain a benchmark positions at the ratio of the above, but in the meantime will be “convertible” as the main means of operation.

Will not fundamentally change the direction of the stock market

Mr Chiang interest tax adjustment that the expected impact of the market. Mr Chiang said that from the macroeconomic regulation and control perspective, the interest tax relief is inevitable. Interest tax as a tax on the revenue contribution is not significant, is based on the phenomenon of excess savings, to stimulate domestic demand and the introduction of the policy. Currently, the CPI rose more than deposit rates, resulting in real interest rates negative. To reverse this situation, interest tax relief than to increase deposit rates stronger effect. But if interest tax relief, it does not mean that no further increase in interest rates later.

Mr Chiang said, the stock market, interest tax relief and interest rate increases similar to the role, equivalent to an increase in deposit rates. Interest tax and fee income, as a bad factor exists in the market has been expected, will not fundamentally change the direction of the stock market. Has been good for the banking stocks, Mr. Chiang expressed interest tax relief on bank shares no significant impact.

Copyright Fund China 2008.

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