threats of fiscal deficits. This situation for the Chinese economy and China's stock market is

From late October rally beginning up to now, but five weeks, but it seems to many investors, but manasarovar. The reason is simple, the stock market rose briefly after two weeks, but suffered three consecutive weeks of decline, finally form a 200-point rally is lost two-thirds. Now, not only stock downturn, extreme contraction in trading volume, market conditionsFive weeks ago and seems to have not had much of a difference. The question now is, why is this rally would behave so weak? Three consecutive weekly decline, is what causes, tell us what? It must be recognized that this wave of rebound was quite weak, in essence, because its basis is not secure. Members will recall that in mid-October when Huijin publicSecretary begins four major lines of public holdings stock, when this is understood to be the management a clear long signals to the market. Since then more and more obvious policy signal preconditioning fine-tuning, it is already happening in the larger environment change of Lenovo, market sentiment has been mobilized, returning to the rally started immediately. Main capital stocks (eleven-twenty fifths)Unit fled to cut meat must regret having sudden boom is not likely in a move investors Gospel: hold stocks saved! But looking back, although preconditioning of the policy of fine-tuning does occur, but this is really true preconditioning fine-tuning swtor power leveling, and investor's imagination and expectations there is a big difference. What's more, the relevant Department constantly stresses the general direction of the control will not change. This givesIt is a clear signal, that is, if the stock market's rise was built on the basis of the policy shift, which is undoubtedly wrong. Because it does not have such a condition. As more and more investors are aware of the problem, they will naturally choose to wait, wait for policy adjustment of increase in the future, instead pinning its hopes on substantial improvements in the current policy environment. As a result, anti-After two weeks of play, because there is no incremental capital, the stock market began to decline. By reason, although the policy change that appears some distance from the investors ' expectations, but after all, the gradual loosening of policy is the general trend. And seeing that, despite the current stock market performance is more cautious, but wouldn't need backhand strong short, which isPan Yin-lien should not arise.����Which was a triple negative, I should say is related to current events inside and outside. From the outside, European debt crisis spreading, it seems endless, unable to find an effective solution. United States economic recovery struggling, threats of fiscal deficits. This situation for the Chinese economy and China's stock market is, constitutes aNo small pressure. While in the territory, on the regulation of real estate has begun to bear fruit, then there's negative impact on the real economy is also increasing; enterprises more difficult operating conditions have gradually increasing trend, which HSBC China PMI index fell to 48 in the month, again breaking 50 "dry line". These unfavourable factors set, on the stock market has brought muchImpact. Especially those large blue-chip stocks, which originally was to act as a foundation of rebound, in the run up to the "God needles" effect. Now because of the micro-level bad constantly, these large blue-chip stocks generally trade moved down the center of gravity, also posed a drag on to market. Originally, still some funds are keen theme share of hype, but when the market blue-chip stocks steady notWhen things changed. More or less underweight as most investors operation strategy of last resort, shrinking turnover has become inevitable. In this case, the market appeared contour Yin-lien which is inevitable.����This shows that the markets were no longer able to up-here, you need to have for a long time to adjust. Based on this pattern, for next week's stock market is naturally difficult toView. Generally speaking, the market will also be weak finish, no small pressure on early lows. Of course, as investors and improving the environment is also expected, and this is a sufficient basis. Therefore in the absence of unexpected bad premise, next week the stock market's decline is limited, did not rule out even lower after opening higher, lines even Yin ended weeks of May. However the old republic power leveling, even ifA rebound is weak, the market exhausted basic pattern will not change.