BIZCHINA / Top Biz News |
A-share market growth tops world(Xinhua)Updated: 2006-12-31 14:35 The Hushen 300 Index, which tracks some of the top values on China's yuan-denominated A-share market, posted the highest growth of any stock market in the world in 2006 with a 121 percent rise, China Securities Journal reported on Saturday. Listed companies raised a record-high of 220.44 billion yuan (27.56 billion U.S. dollars) on the Shanghai and Shenzhen bourses in 2006, up 43.14 percent on the previous high of 154 billion yuan in 2000. The total market capitalization of the two stock markets grew 175.68 percent year-on-year to 8.9 trillion yuan, which is equivalent to nearly half China's gross domestic product in 2006. The two markets registered aggregate turnover of 9.05 trillion yuan in 2006, an increase of 186.22 percent on 2005. Market analysts have attributed the bullish market to factors such as the success of share-holding reforms that converted non-tradable shares into tradable shares, the increasing number of institutional investors, and a sound legal foundation bulwarked bya series of securities laws and regulations. Many financial experts predicted further growth next year, as the government continues to push forward reforms of the foreign exchange rate, taxation and stock market. The value of the Renminbi, China's currency, also reported a new high against the U.S. dollar on the final day of trading day, breaching the 7.81 mark. (For more biz stories, please visit Industry Updates) |
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