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BIZCHINA> News
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Index up 1.65% with turnover shrinking to new 3-month low
By Li Zengxin (chinadaily.com.cn)
Updated: 2007-07-03 15:48 Stocks in the precious metal, real estate and construction industries were the best performers today. Zhongjin Gold rose more than 10 percent to lead the surge by metal shares. Machinery makers were also strong. B shares were up. Of the 109 listed B shares, 96 went up and three finished flat. Huaxin Cement was up 10 percent as the largest gainer. Most closed-end mutual funds listed on the exchanges surged today, with both the fund indices up more than 1.5 percent. After hitting a three-month low in turnover yesterday, the stock market today saw an even lower transaction volume of 129.8 billion yuan, the lowest since April. Dates with monthly lowest turnover in 2007 (in billion yuan) The expansion of the investment scope of the qualified domestic institutional investor (QDII) program to stock markets from fixed-income and money markets has revitalized the lukewarm scheme. The first QDII product has received warm welcome by the investors. The Industrial and Commercial Bank of China (ICBC) completed the sale of its QDII fund on Friday, raising a total of 4.45 billion yuan (US$586 million). The fund will invest half of its assets in mainland-related stocks in Hong Kong and the other half in high-yield bonds and money-market products across Asia, the bank said. Each Individual investor must put in at least 300,000 yuan to participate in the fund. It is the largest fund ever raised under the QDII program. Following inception of the QDII program in July last year, market enthusiasm for the program cooled due to the booming domestic stock market and expectations of appreciation of the yuan. On the other hand, the banking regulator yesterday ordered small- and medium-sized banks to rein in lending and step up their oversight of credit flows to prevent borrowed funds from entering the heated property and stock sectors. The China Banking Regulatory Commission also urged banks to better comply with government policies on the economy and to reduce exposure to high-polluting and energy-intensive sectors. "There are problems associated with lending by some small and medium-sized banks that merit great attention," the commission said. (For more biz stories, please visit Industries)
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