Blue chips bounce back, index up 2.18%
Updated: 2007-12-19 17:15
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Shenzhen Component Index |
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The Shenzhen Component Index, tracking the smaller Shenzhen Stock Exchange, closed 312.90 points or 1.95 percent up to 16,387.01. Opening higher from 16,226.89, it mapped out a similar trend to its Shanghai counterpart, and hit its daily high at 16,180.31 and a low to 16,466.24. Of the A shares, 562 moved up, 35 dropped and 76 saw little change in prices.
Stocks in media, culture, finance and information technology were particularly strong. Closed-end funds and foreign-currency denominated B shares also caught up with the surge.
Analysts attributed today's strong performance to the release of the subscription funds for three new stocks, China Pacific Insurance Group, Xinjiang Goldwind Science and Technology and Liaoning Publishing and Media. After hitting a new record of 3.4 trillion yuan for the three stocks by retail and institutional investors, the funds flooded back to the market and drove the stock prices up today.
Also, there was a piece of good news for the market: Li Rongrong, chairman of the State-owned Asset Supervision and Administration Commission, said yesterday at a central government work conference that the adjustment on State holdings in large listed State-owned companies should take investor's interest as a top priority. In other words, the nation will not dump its holdings in these companies if there are chances that investors, smaller ones in particular, will be hurt by the consequences, industrial experts believe.
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