Roach: China's stock market reaction to the excesses of special treasury bonds.

<P>: Http:// News, Morgan Stanley Asia Chairman Stephen Roach on June 30 in Shanghai to attend the "China Europe International Business School First Bankers Forum," said China's stock market may be issued by the Ministry of Finance 1.55 .trillion yuan of special treasury bonds overacting. .</ P> <P> issue of special treasury bonds in the Treasury under the influence of such bad news, the Shanghai A shares on Thursday fell 164 points deep sites, the broader market on Friday continued to fall 93 points. .Last week the stock market fell, leading to more than 1.1 trillion yuan in Shanghai and Shenzhen market value evaporated. .</ P> <P> When asked about the recent stock market's view of China, served as Morgan Stanley's Stephen Roach, chief global economist, said fluctuations in the capital market not only in China, are normal in the rest of the world .events. .China's stock market may be misreading the intention of issuing special treasury bonds, the market may also issue special treasury bonds to the impact of overacting. .Alternatively, the market itself, there is reduced requirements, and special treasury bonds to be used as a cut just a "cover." .</ P> <P> Post reporter in answer to the Chinese government views the recent increase in stamp duty, he said, the Chinese government raised the stamp duty is taken that an overheated stock market regulatory measures. .However, he believes that the volatility of the market should be self-correcting markets, and should not be excessive government intervention. .</ P> <P> a number of brokerage firms have also agreed to issue special treasury bonds market overreaction to say. .They said the issue of special treasury bonds will not be the first to issue 1.55 trillion yuan, will be time-released in batches. .The hypotheses are issued 10 times, each time only 155 billion yuan. .In addition, the issuance of special treasury bonds to public investors is not the issue, take away most of the funding institutions such as bank deposits, these funds into the stock market did not, therefore, the Ministry of Finance to issue special treasury bonds on the stock market did not affect the big imagination .. .</ P> <P> for the US-China trade, Stephen Roach, said the U.S. sanctions against China will not help reduce the U.S. deficit. .The U.S. Congress has now entered the debate on U.S. international trade policy, the key stage. ."I'm in the last 3 months 3 to testify on US-China trade policy. The U.S. Congress is gearing up to squeeze in China. The United States completely to blame for China trade deficit with China, and tried to impose sanctions on China, which .point of view is very wrong --- may lead to policy mistakes have serious impact. "</ P> <P>.