Top Biz News

Stocks rise to 3-week high

(chinadaily.com.cn/Shanghai Daily)
Updated: 2007-03-20 17:14

Separately, Vanke said it plans to publicly sell new shares, raising funds for residential projects worth 31 billion yuan. The share sale may be equal to 20 percent of the company's expanded capital, it said.

Citic Securities Co fell after the securities regulator barred the use of stock-sale proceeds to invest in other shares.

Proceeds of share-sale by companies won't be allowed to be invested in stocks, theChina Securities Regulatory Commissionsaid today. Companies will also be barred from using stock-sale proceeds to buyinitial public offerings, derivative products and convertible bonds.

TheBeijing-based regulator said it will step up its monitoring on the use of share-sale proceeds, without saying when the rules will take effect.

Citic Securities, China's biggest publicly traded brokerage, slid 0.79 yuan, or 1.9 percent, to 40.39 yuan. Hong Yuan Securities Co, the nation's first publicly traded brokerage, lost 0.35 yuan, or 1.6 percent, to 21.45 yuan. Lower trading volumes dent brokerages' revenue from commissions for buying and selling shares for clients.

China's securities regulator, Shang Fulin, is reinforcing moves by central bank governor Zhou Xiaochuan to slow the economy by curbing speculation in real estate and stock markets. China's economy expanded 10.7 percent last year.