Business Channel 2007-02-09&11

They are the markets every investor¹ wants to find before they take off and after a 130% rise in China's locally traded market last year. Millions of Chinese have poured their money into stocks. But that's making problems for a nervous government. Tyler Matheson is On the Money.

China's individual investors² have few options. So it's standing³ room only inside this Shanghai brokerage house where they line up to buy and sell.

Our phone lines and trading systems are under a lot of pressure from the higher volumes.

These are just a few of the 90,000 new trading accounts opened each and every day in China in this bull market, 35% more than just last year. With multiple IPOs, a stronger one, double-digit earnings⁴ growth and a GDP up 10.7% in 06. Many say the Chinese market may be on the verge⁵ of a shakedown.

What's different about 2007 is more volatility⁶ and less room for profits.

And as our Cheng Lei of CNBC Asia explains the state government is worried.

For China's 80 million retail⁷ investors, trading in stocks is one of the few investment options they have, what the government doesn't want is for them to lose their hard-earned savings⁸ in a market bubble.

Despite bubble fears and the market's ups and downs, retail investors, for the most part, continue trading unfazed.

The corrections are good for the market in the long run.
Volatility's not scary. I'm sticking to metals and property stocks.

Foreign investors are taking profits though like UBS- the biggest foreign investor in Chinese stocks.

A switching, should I say, or, or, or, or selling down of stocks that we have held for quite some time, ah, that our clients have held for some time, and then switching to new stocks which is quite consistent with what I mentioned people are looking for the stocks of lower valuation and then really ditching the ones that, you know, have gone up quite a bit and taking profit.

But until Chinese investors can also invest overseas. The long lines like this at brokerage houses are likely to continue.

On the Money, Tyler Matheson, CNBC.


Vocabulary


hard-earned adj. earned or achieved after a lot of effort
a hard-earned victory

unfazed adj. not confused or shocked by a difficult situation or by something bad that has happened
The Prime Minister appeared to be totally unfazed by the protesters.

1 investor   

n.投资者，投资人

参考例句：

• My nephew is a cautious investor.我侄子是个小心谨慎的投资者。
• The investor believes that his investment will pay off handsomely soon.这个投资者相信他的投资不久会有相当大的收益。

2 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

3 standing   

n.持续，地位；adj.永久的，不动的，直立的，不流动的

参考例句：

• After the earthquake only a few houses were left standing.地震过后只有几幢房屋还立着。
• They're standing out against any change in the law.他们坚决反对对法律做任何修改。

4 earnings   

n.工资收人；利润，利益，所得

参考例句：

• That old man lives on the earnings of his daughter.那个老人靠他女儿的收入维持生活。
• Last year there was a 20% decrease in his earnings.去年他的收入减少了20%。

5 verge   

n.边，边缘；v.接近，濒临

参考例句：

• The country's economy is on the verge of collapse.国家的经济已到了崩溃的边缘。
• She was on the verge of bursting into tears.她快要哭出来了。

6 volatility   

n.挥发性，挥发度，轻快，（性格）反复无常

参考例句：

• That was one reason why volatility was so low last year.这也是去年波动性如此低的原因之一。
• Yet because volatility remained low for so long,disaster myopia prevailed.然而，由于相当长的时间里波动性小，灾难短视就获胜了。

7 retail   

v./n.零售；adv.以零售价格

参考例句：

• In this shop they retail tobacco and sweets.这家铺子零售香烟和糖果。
• These shoes retail at 10 yuan a pair.这些鞋子零卖10元一双。

8 savings   

n.存款，储蓄

参考例句：

• I can't afford the vacation,for it would eat up my savings.我度不起假，那样会把我的积蓄用光的。
• By this time he had used up all his savings.到这时，他的存款已全部用完。