China share market yet to hit its peak, says Lenovo founder Liu Chuanzhi

Lenovo founder believes shares will continue to prosper on the back of government push for people to turn their savings into investments

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China's economic growth is slowing after decades of rampant increases. Photo: EPA

Published: 1:00am, 29 Jun 2015Updated: 8:40am, 29 Jun 2015

China's stock market, which turned four dismal years on their head last summer to embark on a skyward trajectory, has not hit its peak despite all the talk of a bubble and the likelihood of continued turbulence, according to one of the country's most respected entrepreneurs.

The bourse would continue to prosper as the central government was encouraging people to shift their deposits from savings accounts at local banks to private investments, said Liu Chuanzhi, chairman of Legend Holdings, and the founder of Lenovo, the world's top PC maker.

He made his comments in an interview with the before the benchmark Shanghai index sank more than 7 per cent last Friday. "There will always be ups and downs," he said. "But in the long run, I believe the Chinese stock market will continue to rise, because the transfer [of people's savings to capital] will continue."

Liu Chuanzhi said China's new leadership was changing tack to let people make their own investment choices in previously forbidden areas. Photo: May Tse

The Beijing-based Legend, envied for its diversified portfolio with Lenovo as its prize, will list in Hong Kong today after raising about US$2 billion from its initial public offering.

Liu said China's new leadership, led by President Xi Jinping and Premier Li Keqiang , was changing tack to let people make their own investment choices in previously forbidden areas.

There will always be ups and downs. But in the long run, [the market] will continue to rise

LIU CHUANZHI

"The government is now trying all means to get people to spend or invest, including letting them put their money in capital markets," Liu, who founded Lenovo in 1984, said.