reported.
He made the remarks when attending a luncheon hosted by the Hong Kong provincial-level fraternity of Chinese People’s Political Consultative Conference.
At the luncheon, Xiang said that there were some problems existing in the current mainland stock market, that the index had risen too quickly and there might be bubbles in it. However, he said, we may use beer as a metaphor to describe the current situation in the stock market: it may not be a bad thing for beer to contain some bubbles, as long as there aren’t too many bubbles in it.
Despite this, Xiang also said that the index had risen too quickly within a short time. Right now, the average P/E ratio in the mainland stock market has already reached 40, or even 50. Usually, the average P/E ratio for a new stock market may be around 15. In Hong Kong, such ratio merely has reached 18. This shows that stock prices in the mainland stock market are relatively high, he pointed out. 英.语.文.摘
He said that right now, the total number of stock account holders in the mainland has already reached 100 million. Even students and elderly people now plung into the stock market. According to him, mainland investors should be fully aware of the possible risks involved in the stock market and take measures to control the risks. In addition, investors should understand that fluctuations in the stock market are unavoidable and they should be prepared for the possible big drop in the market.