Stock prices in Shanghai are continuing to slide after yesterday’s close below 2000, the Shanghai Composite Index continued its downward trend to end today at its lowest level in 45 months.
Many shares continued to fall right after the market opened this morning. By the end of the day, the index was down about 0.9 percent, while in Shenzhen, the Component Index fell by a bit MORE than 1%.
There were few investors in stock trading halls in recent days, but some who did show up said they were not surprised to see prices falling.
An investor said, "We are already used to it, the falling shares. And at the end of the year, companies need money to balance the books. "
One analyst said the fact that shares of several state-owned companies that have listed this year have just come out of the lock-up period is one reason prices are falling. But he says a suspension of new IPOs means the market may not warm up in the near future.
Zhao Xiaoli, Investment Consultant of Shanghai Securities, said, "The market has been weak for a long time，and it is impossible to get rid of the situation by itself. There are already no more new IPOs this month. And the market is looking for new policies. We may have a rebound next spring."
The central committee of China’s Communist Party is expected to hold an economic conference next month, and investors say they hope the government will use that gathering to announce new policies for next year.
