A-share market to pick up in 2013, says Dai Xianglong

Updated: 2012-12-13 21:42


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The A-share market will perform better next year, according to Dai Xianglong, chairman of the National Council for Social Security Fund.

At a forum in Hangzhou, Dai advised investors to remain cautious but invest more in 2013.

A shares are specialized renminbi shares bought and traded on the Shanghai and Shenzhen stock exchanges. This is in contrast to renminbi B shares which are owned by foreigners who cannot buy A shares due to central government restrictions.

Dai said the US economy is picking up, propelling a global recovery, with the worst of the crisis in Europe now over. In China, the economic slowdown has been halted and the nation is showing much potential, especially in urbanization.

Dai said bubbles in the A- share market, lack of confidence and "incompleteness" in market systems have all resulted in the slump. With the restructuring of the economy next year, investors’ confidence will grow accordingly.

Representatives from 18 social security management institutions at the forum also voiced growing optimism.

According to experts at the forum, the consumption industry is showing steady growth, with integrated traditional industries attracting the most interest. Undervalued stocks such as bank shares will have more chance in the market.