Allied Capital Inc Follows China the World’s Second Largest Stock Market

NEW YORK - Feb. 23, 2015 - PRLog -- Market capitalization in China had by yesterday increased to some $4.48 trillion following an increase of 33 % over the course of this year so far. Japan’s market capitalization has declined down to $4.46 trillion having fallen by 3.2 % in 2014. Back in March of 2011, China was for a very brief period the second largest market after that of the U.S., following an earthquake in Japan that saw shares prices plummeting in Tokyo.

Though the weakening of the yen has had a marked effect on the shrinking Japanese market value in purely dollar terms, it has to be noted that the Shanghai Composite Index has gained by nearly 300% more than the Topix in Tokyo this year. The cutting of interest rates in China last week for the first time since 2012 triggered economist’s predictions that authorities will engage in further measures to support the economy as it heads towards its slowest period of annual growth since 1990.

“2014 has been a year of mixed emotions for the Chinese market place with solid growth, if not spectacular gains in a number of sectors in addition to increasing government support being tempered by a fall in other areas, new IPOs being a clear example despite the lifting on their ban earlier this year” voiced Allied Capital Inc Desk Analyst Lilly Wang.

Yesterdaymarked the sixth day that Chinese shares advanced, lifting the Shanghai gauge to a three-year high point driven by record turnover, following that country’s the central bank holding off from selling repurchase agreements, in a sign of relaxing monetary policy, their first occasion since July .As of yesterday the Shanghai index has advanced by 24 % this year headed clearly towards is greatest annual advance since 2009.

“For those investors who have shown a willingness to stay the course despite a myriad of bad advice at times, they have rightfully reaped their rewards and we see next year as being a continuation of this year’s incredible progress in the Chinese market place and are gearing a great deal of our portfolio to exploit this” stated Lilly Wang of Allied Capital Inc.

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