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Ding Yuan, Professor of accounting at the China Europe International Business School |
"Money always flows to areas with great growth potential," said Ding Yuan, Professor of accounting at the China Europe International Business School, referring to changes in China's investment environment. He predicts that there will be significant changes in investment portfolios next year, as new markets become popular. As one of the world's top emerging economies, the Chinese investment market has great potential for growth in 2011, according to Ding.
Ding also said that China's stock market will see modest growth in 2011. "It is unlikely that the Chinese stock market will see any dramatic growth, as it did in 2006 and 2007," Ding said. "When owners of industrial assets begin to purchase shares of their own companies, we can see that prices of these stocks eventually bottom out," said Ding.
The 2011 Economic Blue Book on China's Economy, released by the Chinese Academy of Social Sciences, also states that the Chinese stock market will be quite conservative in 2011. The paper predicts that the market will slowly and steadily increase in 2011, due to relatively tight economic policies put in place by the Chinese Government. |
