Xie: if the attract/bid for/invite investments to hide abound people A shares up 10 times

"Attract/bid for/invite investments this mode must be changed, or A shares is speculative" xie said recently.
"The stock market is A core problem of excess capacity, if the government does not change the mode of investment, the A shares are always speculative." Independent economist Andy xie again yesterday in Shanghai something outlandish, "if instead of Tibetan people abound, such as state-owned enterprise market, sell stock to common people, it is A shares can rise 10 times."
Xie is in the China financial at the "2012 China financial security peak BBS and blue ocean close sword 4th firm competition award ceremony" made the remarks. After September 24, blue ocean close sword "the fifth hedge funds open" also has been launched.
The only way to stimulate the economy is the tax cuts
A lot of the personage inside course of study will be our country economy the wheel down to blame for the debt crisis, but in xie opinion, the debt crisis to our country economy directly influence should not have so big, "last year I will judge our country economy this year is a big inflection point, for 2009 to 2011 years of economic growth is unsustainable, the reason is that it is policy stimulus cause."
Xie said, policy stimulation economic growth is unsustainable, continuous time also is two or three years, but at that time the market will be the short-term effect considered a new cycle begins, so capital began again to hype, and caused more foam.
Just in this round of economic stimulus measures, the world mostly chose the monetary policy and fiscal policy have no choice, xie further analysis says, this is because countries are already aware of, rely on growth to solve the financial deficit has been impossible, can only rely on compression spending.
"Although the United States, the European Union and Japan and other economies loose amplitude is not small, but the reverse the direction of the economic operation is not possible, at best is slow decline range." Xie said yesterday, "in this case, the world economy in the future the most possible situation is stagflation."
China's economy is concerned, xie believe that the first half of next year or more economic downturn. "To solve the economic problems is a way, is the tax cuts, add some family consumption ability, but now see." Xie said yesterday, "some tax cuts also are mainly propaganda, the actual amount of tax cuts but little."
A shares better can only expect A better economy
In the new round of loose policy stimulus, the us stock market once toward historic highs: on October 5,, the dow Jones index once reached 13661.87 points, a rise in October last year since more than thirty percent, distance, 11 October 2007 creating a new record of 14279.96 points only one step away.
In comparison, Asian markets more than peers. To A share as an example, September 26,, dish boomed in the lowest below 2000 points to 1999.48 points, hit A on February 2, 2009 since the low, and A peak in 2007 6124 points already fell to 67%. South Korea and China Taiwan, and other Asian economies of the stock market also presented with A share similar characteristics.
"The stock market the core issue of the reason is that Asia specializing in manufacture, the enterprise profit by economic impact special big." Xie hit the stock market and Asian markets caused by different reasons.
In xie opinion, A shares is the core issue of excess capacity, leading to the listed companies' profit not beautiful, "A shares to A reversal of words, only expect the economy better this way."
Although A share valuations relative to the former 70 times when p/e ratio is cheap, but in the history, many economies have long-term stock market to maintain the level of p/e ratio in low single digits.
"The government economic management mode is long-term investment, as long as the plant cover up demand, such as over the past 20 years is this model. Xie said, but now 20 years of big cycle is over, and then take the "etc." strategy is not going to work.
Xie introduction says, South Korea also once take our country at present the strategy, the first investment to find demand, the result was a surface economy maintained rapid growth, but the market is very low, the reason is that the investment will not be repaid.
"As long as the funds focused on the policy of the government way of thinking has not changed, investors and to the possibility of a bull market is very small. Xie in the BBS, said "attract/bid for/invite investments this mode must be changed, or A shares is speculative.
Xie points out, if will attract/bid for/invite investments to Tibetan people abound, such as state-owned enterprise market, the stock will be sold for the common people, then the next 20 years per capita GDP reaches usd 30000, A shares can rise is 10 times.
Golden bull market a year or two will not end
"Gold is currency substitutes, money can super hair, but gold is can't literally seal." Xie yesterday in BBS, said "so in the present under the background of global loose, golden bull market is not over yet.
So golden bull market when does it finish? In xie opinion, if the federal reserve started raising interest rates, the investors should sell gold, "but the fed in the next one or two years is not raising interest rates."
In the firm see more gold at the same time, xie sing empty Australian dollars. "Hurry up dollars sell, if in Australia have house words, hurry to sell, and then the Australian dollars into other currencies. Xie still is continueing its consistent strong attitude, "Australia may have to suffer a hard landing."
"Australia to borrow money for dollars rise, also money let a slump, history has always been so, now is about to crash." Xie said.
Australian dollars or will have rose to the fall of the inflection point, perhaps this is affected by iron ore prices keep falling down. Iron ore and other natural resources can be Australia's economic pillar, before a few years benefit in China and other emerging market strong demand, iron ore prices soared, and now China's iron and steel production capacity surplus markets such as serious, the economic downturn makes iron ore price brilliant no longer, and then drag the Australian dollars.