The paradox of China's stock market

BEIJING, Nov. 29 (Xinhua) -- Although the Chinese economy has shown strong signs of stabilizing, the key Shanghai stock index opened at its lowest point in nearly four years on Thursday.

Experts have attributed the paradox mainly to an imbalance in supply and demand on the stock market, a seasonal cash crunch toward the year's end and systemic flaws that make it difficult for the stock market to fully reflect the economy.

The benchmark Shanghai Composite Index slid 0.89 percent to end at 1,973.52 on Wednesday, the lowest level since Jan. 19, 2009.

Chinese stocks opened even lower on Thursday, with the benchmark Shanghai Composite Index opening at 1,972.93, down 0.03 percent from the previous close.

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