Petrochemical, bank shares drive index up 2.6%
Updated: 2007-12-25 09:53
The Shenzhen Component Index, tracking the smaller Shenzhen Stock Exchange, opened higher at 16,931.04, went through the day within a bound between 16,895.25 and 17,266.58, and finished at 17,153.93, up 345.25 points or 2.05 percent. Of the A shares, 473 rose, 110 ended flat while 92 closed down.
From the macroeconomic perspective, there is even more good news for today's market. A draft amendment on personal income tax law lifting the tax-free threshold from the current 1,600 yuan to 2,000 yuan is being studied by the National People's Congress (NPC), and likely to be adopted on Friday and take effect from March 1 next year, legislators said. More depository income for Chinese residents will generate more capital influx and is beneficial to the capital market in the long-term, industrial experts said.
| Shenzhen Composite Index |
| Source: www.sina.com.cn |
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Also, the State-asset manager could change from its current status as both supervisor and investor to State-owned enterprises to sole investor. Lawmakers at the 31st session of the 10th NPC Standing Committee are reviewing a draft of 14-year-old legislation in order to clarify which departments and ministries are allowed to invest in State firms.
The State-owned Asset Supervision and Administration Commission, which represents the State in 152 major State-owned enterprises (SOEs), has played an often competing dueling role as both regulator and investor. But the draft law has, in reality, defined it as a pure investor, although it has not explicitly spelled it out, a finance professor said. Such a status shift marks a step forward on freeing up central large SOEs and making them more market-oriented, competitive modern companies, he said.
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