Chinanews, Shanghai, Dec. 6 – The Shenyin & Wanguo Securities recently predicted that in 2007, the Shanghai Shenzhen 300 index will grow by 35% to touch the 2,150 point.

 

The company made the prediction at its annual forum on investment strategies held in Shanghai on Monday.

 

As one of the most influential securities companies in China, the Shenyin & Wanguo Securities points out that in 2007, Chinese economy will maintain its steady growth and people’s expectation on Renminbi appreciation will continue. Meanwhile, listed companies will make a better business performance and more good companies will go listing in the stock market next year. All these will attract a lot of capital to flow into the A-share market, making it maintain its bullish atmosphere.

 

Yang Chengzhang, chief economist at the Shenyin & Wanguo Securities, said that in 2007, Chinese economy will remain as a booming market. Since export volume and investment growth rate will decline, the economic growth rate for the whole year is expected to reach 9.8%, 0.7 percentage point lower than this year’s growth rate. Before 2020, Chinese economy can continue to grow at a rate of around 8%. From 2006 to 2016, the economic growth rate will keep at 8.8% and from 2016 to 2020, the country’s economy will grow at an average rate of 6.5%.

 

He predicted that Chinese A-share market, now ranking No.14 in the world stock market, will move forward to rank among the world's top ten in the next two years, starting to attract international capital to flow in.