Learn mandarin - Market digests rate hike, feeling pressure near critical frontier

?  ?

BIZCHINA / Index & Statistics

Market digests rate hike, feeling pressure near critical frontier

By Li Zengxin (chinadaily.com.cn)
Updated: 2007-08-22 16:55

In response to the fourth interest hike this year by the central bank
last night, Chinese stocks opened nearly 80 points lower than yesterday
but soon rallied to near the 5,000-point mark. Although both the major
indices broke records on their closes today, the benchmark Shanghai index
failed to reach that critical psychological frontier.

Total turnover of stocks in the major indices expanded to 258 billion
yuan, the largest in two weeks.

Shanghai Composite Index
Source: www.sina.com.cn

The Shanghai Composite Index opened 78.86 points lower at 4,876.35, and
hit the lowest 4,861.27 after the opening. But soon it returned to higher
levels. As it moved toward the 5,000-point mark, the downward pressures
increased. At its highest of 4,999.20, the index was immediately dragged
down by selling bids on individual stocks. Finally, it closed at
4,980.08, 24.87 points or 0.5 percent higher than the previous close.

Shenzhen Component Index
Source: www.sina.com.cn

The Shenzhen Component Index, tracking the smaller Shenzhen Stock
Exchange, opened lower at 16,704.93 and stayed within a range of between
16,667.94 and 17,446.10. The index closed at 17,331.99, up 472.02 points
or 2.8 percent.

Of the A shares listed in Shanghai, 524 went up, 243 closed down and 75
finished unchanged. Of the gainers, 22 were sealed at the maximum growth
cap of 10 percent.

In Shenzhen, 355 A shares closed higher, including the 12 best performing
stocks with 10 percent growth, while 198 slipped down and 83 ended flat.

Chalco, TCL and Wuliangye Yibin, three of the largest traders, climbed
over 5 percent. The Industrial and Commercial Bank of China, with the
largest trading volume in Shanghai, however, dropped 1.7 percent to slow
the index.

A shares in the food, services and paper industries led the surging
waves. B shares finished mixed, with 49 of the total 109 B shares edging
up.

As the stocks broke through previous highs this week, the total market
value of China's stock market also made new records, surpassing the 22
trillion yuan mark yesterday when the Shanghai index closed near the
5,000-point line. All securities listed in the two stock exchanges were
worth 22.02 trillion yuan, 1.08 trillion yuan higher than China's gross
domestic product last year.

(For more biz stories, please visit Industry Updates)

?? ?? 1?? 2?? ??

?? ?? 1?? 2?? ??

Learn Chinese, Learn mandarin