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4 percent drop puts brakes on bull market

By Chen jia and Xie Yu (China Daily) Updated: 2015-05-06 09:17

"The appointment of Vice-Premier Liu Yandong shows the direct support and supervision from the central government," Shanghai-based analyst Xie Gang of Qilu Securities said in a research note released on Monday. "It pushes soccer reform up as a national strategy now. We believe the sports and soccer industry will develop well in the long run."

According to a 50-point road map, released in March, the country has set a long-term target of qualifying for the World Cup. The national government will provide more funding for the national team, and set up two new training camps and 50,000 soccer schools by 2025.

Some companies in the "soccer concept shares" sector actually have a limited relationship with the game, said Tao Ye, an analyst at Beijing's Minsheng Securities.

"The surge in share prices is mainly triggered by concept speculation," he added.

 

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