Hidden risks of China's stock market soared Yingbao Chen.

<P>: Http:// hearing, according to the British "Sunday Times" reported on September 2, last week, world stock markets continued to fluctuate wildly, only one significant exception. .Fast forward in China's stock market over the past month, Haobulicai market turmoil caused by other uncertainties. .</ P> <P> With the rapid rise in the market, the Shanghai and Shenzhen Composite Index exceeded 5,200 points and 17,000 points mark. .</ P> <P> Shenzhen stock market rose 34% in the past six weeks, up 165% this year. .The Shanghai Composite Index 95% higher than the year, up 33% over the past six weeks. .In contrast, the London "Financial Times" 100-stock index fell 6% over the past six weeks, from the beginning of the year rose by only 1%. .</ P> <P> strong growth in the future so that people began to worry that the dragon can not continue to roar. .Seven Investment Management Justin Stewart said: "It has the typical investment bubble will burst all the features. In the short term, increasing the risk, I would avoid." </ P> <P> .China's recent strong rise in the stock market is largely due to huge amounts of money into the local investors. .Chinese people's savings estimated 2.3 trillion dollars, while the inflation rate of more than interest rates. .The inflation rate is now 5.6%, while deposit interest rates of only 3.6%. .Results investors in order to get higher income and put money into stocks. .As share prices rise, more money into, reminiscent of the 90's boom and bust Internet companies. .</ P> <P> as prices rise, from a global perspective, China's stock prices began to seem expensive. .Shanghai and Shenzhen stock index trades at 50 times the company, and "Financial Times" 100 companies was 11 times. .If Hong Kong were included, China's stock market is now bigger than Japan's exchanges. .</ P> <P> order to restrain the stock market soaring, the government tripled the stamp duty, raising interest rates and began to relax restrictions on the purchase of stock requirements. .</ P>.