Experts suggest soon decline of financing-fuelled Chinese stock market

Ha Jiming, vice chairman and chief investment strategist for the investment management division of China at the Goldman Sachs Group (Asia) Ltd. (Photo: Chinanews.com)

(ECNS) -- The bullish run of the Chinese stock market has primarily been fuelled by financing, an indication that the rising stock market may see an abrupt decline, according to Ha Jiming, vice chairman and chief investment strategist for the investment management division of China at the Goldman Sachs Group (Asia) Ltd. 

Rising stock markets are normally stimulated by investors, yet the amount of financing in China's stock sector is particularly large, sometimes accounting for 27 percent of day trading, which may bring risky factors to the bullish market, Ha said at the Sanya International Financial Forum.  

Reaching 9 perent at present, the proportion of financed investment in China's stock market has historically exceeded that of the US - which hit 3.4 percent before the Financial Crisis - and Taiwan, which came to 7.8 percent before the IT bubble burst.  

Another economist at the meeting also said that the bullish momentum of the stock market may soon begin to fade.