Breaking stock market plunged 7 thousand and six suffered the darkest day in four years.

<P> </ P> <P> three factors "resonance", the Shanghai Composite fell 89.58 point </ P> <P> analysts believe that the market outlook, limited downside </ P> <P> speed expansion in the market ., macro-tightening is expected to increase under the action of other factors, the market pressure to build up a long time to adjust concentration of the outbreak yesterday, Shanghai and Shenzhen in recent years suffered the most "black" day. .</ P> <P> nearly 30% of stocks trading limit down </ P> <P> last two cities are the major index fell sharply to close. .Shanghai Composite Index fell below 1,600 points to close at 1589 points, fell 89.58 points, or up to 5.33%, to 28 January 2002 the largest single-day drop since; Shenzhen Component Index closed down 4.64%. .G Unit on behalf of the new cities and new index KLCI fell 6.33% and 6.66%, respectively, the two indices for the one-day drop since the market the most. .Affected by the expansion of the most direct index of small plates is a drop of 7.77%, nearly two trading days the index has reached 11.29% decline. .Total turnover of the two cities about 593 billion, representing more than 70 million in the previous session to enlarge. .</ P> <P> stocks were Pudie trend between the two cities, more than 1,300 listed A shares only rose only 53, while stocks are down close to 1100, Change ratio of 1:20. .The two cities together more than 320 non-ST stocks hit bottom, because there are about 200 stocks suspended limit down the number of stocks trading stocks accounted for a number of cities for nearly 30%. .The ST segment is terrible, ST shares traded yesterday, there are 122, but there are 101 limit, limit-down face more than 80%. .</ P> <P> three factors are responsible for a major adjustment </ P> <P> one-day drop so large, so many investors feel a hint of panic. .Long-term trends in the market does not deteriorate the situation, one factor alone is clearly a difficult to manufacture the most "black" day, the combined market views of all parties, the three factors are considered the main cause major adjustment. .</ P> <P> First of all, the market is too large accumulated gains, to adjust their requirements. .Vice president at Wells Fargo Fund and Chief Investment Officer Chen Jiwu view, adjustment is inevitable, pre-market prices is almost non-rational cause to adjust the main reason. .Chen Jiwu that the current short-term market fundamentals do not support rapid rise from the price-earnings ratio and other objective indicators, many stocks have abnormally high price, it is difficult from the perspective of value investing explain the rise in stocks this part. .When the issuance is regarded as good even when it is difficult to say that this market is the reason. .Guotai Junan's Wu Jian Xiong believes that, from a valuation perspective, the market has lost a previous appeal, such as the relative H shares are no longer attractive. .The Everbright Securities Teng India believes that the market itself is technical adjustments required, the lack of further upward momentum in the market situation, profit-emission leads to the concentration of the market extent. .Sheng Wang Hai Tong Securities also believes that profit-taking pressure is the main cause broader market slump. .</ P> <P> Second, IPO funds face speed caused the crowding-out effect. .International distribution in the working capital attracted 204.6 billion purchase, the Bank may also issue A shares this month, some analysts believe that its subscription funds are likely to attract up to 6,000-10,000 million, which will divert the secondary market funds, causing .surface of the crowding-out effect of funds. .Everbright Securities Teng India believes that the secondary market less attractive in the current circumstances, the Bank of China capital market will inevitably bring about crowding-out effect on a particular news of shows, the bank may then landing A-share market, investors .very likely to cause excessive expansion of the expectations. .Institute in SW Gui Haoming view, new from the old three-step almost become a "triple", so that investors expected the policy has changed significantly, an important future market is stable or expansion important .Investors will inevitably cast doubt on this. .</ P> <P> Again, macro-tightening is expected to rise further. .Zhang Lan, director of the League of Nations fund investment that the current face tends to further tightening of macroeconomic policy, in large part to investor expectations of future changes. .Best reflects the trend of macro-policy changes have been for 4 days bond exchange sharp correction, real estate regulation is in full swing, the excessive growth of fixed asset investment and excessive liquidity conditions sufficient so far no obvious changes in the market .expectations for the introduction of austerity policy has been significantly strengthened. .</ P> <P> into a mid-level market will adjust </ P> <P> in the course of yesterday's decline, the apparent lack of market forces to undertake, investors become pessimistic short-term market movements significantly. .Embarked on a medium-term adjustment will it? .</ P> <P> three stocks in which a hand-held small and medium investors in the two limit-down interview Shique looks fairly calm, in his view the market outlook adjustment is limited, the stock will soon own hands .jumped back. ."Large-cap stocks has not yet issued, the market has been or can not go on." .But the fall also made some small and medium investors in the market outlook, the attitude has been reversed, a polished stock in advance of small investors that the broader market had risen too early, and now the market is random speculation subject shares, "momentum has been some .not right ", coupled with large-cap stocks will soon be released," the market may have to fall a little while. "</ P> <P> appears in the fund and other institutional investors, although the broader market outlook, the limited room for adjustment, .But the sideways shock is unlikely to be avoided. .Zhang Lan that the short term do not see the market go up momentum, the market opportunity not to re-up, the market outlook at least sideways for some time. .Chen Jiwu believes that the broader market adjustment is not a bad thing, help to eliminate the market because of some irrational bubbles produced, having a limited room for further downward, but the differentiation of individual stocks would be more apparent. .With further adjustment of the market, the new hot spot will be from birth, such as coal, banks, highways and other advantages of the plate is still the valuation is likely to be the next phase of the hot spots. .</ P> <P> many analysts view the market outlook, there are also obvious differences. .Everbright Securities Teng India hold relatively optimistic about the market outlook, he believes that speed in the context of IPO, the market adjustment pressures have yet to be digested, but the pressure is mainly reflected in the large-cap stocks such as Bank of China IPO, once the Bank of China listed on the real .Instead, it will become a strong market opportunity for re. .Guotai Junan's Wu Jian Xiong believes that the valuation is no longer dominant in the fundamentals, but the bubble does not clear the circumstances, the trend in June there will be more intense shock ,1550 -1780 point is likely to hit the region the next three months. .</ P> <P> Sheng Wang Hai Tong Securities then held the market outlook is relatively pessimistic. .In his view, the market crash means the beginning of mid-level price adjustments, adjust the amplitude and time could be greater than generally expected to be larger. .Wang Sheng to make this adjustment is defined as "modified + stock valuation change effect" to promote the June 2005 -06 in June and the ending, this adjustment is the bull market trend in the sub-amendment, the general market decline in a bull market correction in the .10% -15%, and adjust the target position may be between points in 1400-1500. .But he also pointed out that this year the full year, capital-driven bull market trend can not be shaken. .</ P> <P> Although the market trend for the market's short-term differences, but almost no one on the market doubts the long-term trend for the better, for long-term investors, this is undoubtedly the most important. .(Nathalie) </ P>.