BIZCHINA> News
|
BIZCHINA> News
|
|
Stock index edges up
By Li Zengxin (chinadaily.com.cn)
Updated: 2007-05-25 16:17 Financial shares led the growth again, with industrial index rising 5.79 percent. Shenzhen Development Bank surged 4.99 percent to 29.24 yuan, followed by Shanghai Pudong Development Bank as the top gainers among banking shares. Besides CITIC Securities, Hongyuan Securities also saw a price hike of 6.68 percent to 40.30 yuan. Companies in the hotel and catering services industry were also among the best performers. B-shares stopped the continuous fall for the last three days, with the Shanghai Composite B-share Index ending 8.75 percent up and the Shenzhen Component B-share Index up 0.59 percent. Of the 109 B-shares, only three went down today. Nanjing Postal Telecommunications ranked on top of the gainers with a 10.08 rise in share price. According to data from the China Securities Depository and Clearing Co Ltd, by May 23, the total account number (including A-share, B-share and fund accounts) in the two exchanges reached 99.08 million, up 26.16 percent from the end of last year. It is expected to breach the 100-million mark by next Tuesday, if the growth rate of new account opening were maintained at a daily record of 300,000, as it has been so far this month. By Wednesday, the total number of A-share accounts has exceeded 86.24 million, 13.18 million of which was added up in the first five months this year. There were also 483,500 new B-share accounts this year. New Stock Account Opening Numbers in May
As the stocks have stood still over the 4,000 point and started accumulating strength for further growth, volatility in the market also grew. To avoid loss from payment default by borrowers, several commercial banks had a sudden brake on loan business with share pledge. Once regarded as a needed outlet for excessive liquidity and a lucrative business for banks, now the lending on collateral of stocks became "dispensable" and too risky for banks. More maturing small loan contracts were not extended. And some one-year term loans with share pledge were withdrawn before maturity, even with an annual interest rate as high as 10 percent, according to a source with a commercial bank. (For more biz stories, please visit Industries)
|
