Hao Jianming, president and CEO of Sino Mercury Acquisition Corp (SMAC). (Photo/Provided to ECNS)
(ECNS) -- With equities bullish and value investing in decline, the stock market bubble is doomed to be inflated, according Hao Jianming, president and CEO of Sino Mercury Acquisition Corp (SMAC).
Over the last half year, domestic stocks have seen upbeat earnings and reached a historic high of some 5,000 points. Yet several plunges have also occurred, causing market turbulence.
"The current stock market has been confronted with bubble risks, and the plunges are a process of letting air out of some bubbles," Hao said during an interview with chinanews.com, pointing out that the surging stock market has triggered many problems which need to be handled rationally.
"When stocks run counter to economic entity it means there are too many bubbles in the market, and that large numbers of businesses are speculative investments, which leads to less value investing," said Hao.
Value investing stresses long-term goals rather than short-term profit. Hao said the philosophy involves transferring value and benefitting investees. There are many ways to apply value investing, he added, such as acquisition of corporate control, Warren Buffett's favorite method.
Hao's company, SMAC, was established last March in the United States and listed on the Nasdaq Stock Market the following September. The company plans to acquire Chinese financial firms.
"I hope to apply the value investing philosophy to financial firms through SMAC's buyout funds, and provide better service to SMEs," said Hao.
With investment funds and venture capital control, SMAC will provide efficient and convenient package solutions, he added.
