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BIZCHINA> News
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Stocks close down amid turbulent swings
By Li Zengxin (chinadaily.com.cn)
Updated: 2007-05-24 16:42 Financial shares led the growth, with industrial index rising 2.26 percent. Shanghai Pudong Development Bank surged 5.09 percent to 29.11 yuan, followed by the Industrial Bank as the top gainers in banking shares. Companies in the pharmaceuticals industry were also among the best performers. The A shares is becoming more and more volatile when they've reached the current high levels. Total market value of China's stock exchanges toppled 18 trillion yuan on Wednesday. By yesterday's closing, total market value of shares listed at the Shanghai Stock Exchange was 13.904 trillion yuan, including floating shares of 3.997 trillion yuan. Stocks at the Shenzhen Stock Exchange had a total market value of 4.191 trillion yuan, with floating shares worth of 2.081 trillion yuan. Of the 1,455 listed companies on the two bourses, 44 stocks saw their prices climb over 50 percent, five had their prices doubled, in the 12 trading days of this month till Wednesday. Of these stocks, 24 were specially treated (ST) shares of companies that haven't completed share reforms. In May, the Shanghai Composite Index was up 8.65 percent by Wednesday, the Shenzhen Component Index was 16.18 percent higher and the Shanghai-Shenzhen 300 Index climbed 10.68 percent. In contrast, the overall increase in the ST group was 25 percent. This result, on one hand, reflects a strong growth trend, but on the other, implies huge risks underlining a booming surface. Concerning recent violent fluctuations caused by excessive liquidity in the stock market, the China Securities Regulatory Commission issued a notice on strengthening education of the investors. In its official release this morning, the securities watchdog required all the relevant governing authorities, securities associations, stock exchanges and brokers to enhance education and risk acknowledgement among investors, strengthen law enforcement in operating and trading activities, and improve quality of services and professionalism in management. And China's capital market is set to open wider. US Treasury Secretary Henry Paulson said at a press conference yesterday that China has agreed to raise the total investment quota of the qualified foreign strategic investor scheme from the current US$10 billion to US$30 billion. China will also lift the ban on foreign stock brokerages from entering the country and resume issuing business licenses for brokers including joint venture firms in the second half of this year. (For more biz stories, please visit Industries)
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