Interpretation of Listed Companies (3)

Author: Pan Fuxiang
Publisher:
Publish Date: 2001-12-01
Features: China's emerging securities market has begun to enter the era of value investment, which presents a brand-new challenge to investors at the dawn of the new century. Mr. Zhou Xiaochuan, Chairman of the China Securities Regulatory Commission, pointed out in his speech at Tsinghua University's "New Century Enterprise Summit" that the Chinese stock market should shift from most investors relying on technical analysis or price trends to investing based on fundamental analysis. A key indicator of a mature securities market is guiding investors to transition from predicting short-term price trends to researching the intrinsic value of companies. As most investors seemed to have yet to clearly grasp the policy direction of this shift, the market's evolution provided important evidence in advance. From the chaotic and abandoned stock manipulation of Zhongke Chuangye and Yilian Technology in early years, to the summer's fraudulent activities of Yin Guangxia, and the ruthless downfall of numerous high-tech star stocks, all served as alarming reminders to investors that, in the face of rapidly changing external market conditions, a transformation of investment philosophy has become an urgent priority.