Chinanews, Beijing, Mar. 13 – Prompted by the large consuming population in China and continuation of over liquidity, Chinese stock market will remain prosperous for the next ten years, said Zeng Mang, a well-known analyst on investment.

 

He made the statement at the 2007 Investment Strategy Seminar held last Saturday, the Beijing News reported.

 

Based on the current macroeconomic situation, Chinese economy will continue to prosper for ten years and under such influence, Chinese stock market will also flourish. At present, China's labor-age population has reached its peak, which is actually the result of the baby boom occurring in China between 1962 and 1971 when Chinese birth rate maintained a 3% increase for ten years continuously. Those who are now aged 18 -35 are at their best time of earning money and their high income promotes the consumption in society. It is expected that in 2007-2016, these people will become the main force in production, consumption and investment in China. Prompted by Chinese population advantage, Chinese economy will continue to prosper and Chinese stock market will also remain bullish consequently.

 

China has sufficient money supply for loan release and consumption is continuing to grow in China. As the same time, investment in fixed assets has been on the decline. Chinese trade surplus has further expanded and the yuan will continue to appreciate in future. In light of all this, it is expected that economic growth rate will fall slightly in 2008, but it won’t hurt the Chinese economy and Chinese securities market in the long run.