BIZCHINA> News
Stock index edges up
By Li Zengxin (chinadaily.com.cn)
Updated: 2007-05-25 16:17

Financial shares led the growth again, with industrial index rising 5.79 percent. Shenzhen Development Bank surged 4.99 percent to 29.24 yuan, followed by Shanghai Pudong Development Bank as the top gainers among banking shares. Besides CITIC Securities, Hongyuan Securities also saw a price hike of 6.68 percent to 40.30 yuan. Companies in the hotel and catering services industry were also among the best performers.

B-shares stopped the continuous fall for the last three days, with the Shanghai Composite B-share Index ending 8.75 percent up and the Shenzhen Component B-share Index up 0.59 percent. Of the 109 B-shares, only three went down today. Nanjing Postal Telecommunications ranked on top of the gainers with a 10.08 rise in share price.

According to data from the China Securities Depository and Clearing Co Ltd, by May 23, the total account number (including A-share, B-share and fund accounts) in the two exchanges reached 99.08 million, up 26.16 percent from the end of last year. It is expected to breach the 100-million mark by next Tuesday, if the growth rate of new account opening were maintained at a daily record of 300,000, as it has been so far this month.

By Wednesday, the total number of A-share accounts has exceeded 86.24 million, 13.18 million of which was added up in the first five months this year. There were also 483,500 new B-share accounts this year.

New Stock Account Opening Numbers in May

Date

A-share

B-Share

Fund

Total

2007-05-08

368,489

16,632

36,710

421,831

2007-05-09

325,969

27,764

198,826

552,559

2007-05-10

333,963

35,133

194,143

563,239

2007-05-11

335,278

38,815

362,940

737,033

2007-05-14

346,892

44,777

108,179

499,848

2007-05-15

299,762

56,570

47,037

403,369

2007-05-16

240,023

44,668

42,328

327,019

2007-05-17

232,257

33,693

27,836

293,786

2007-05-18

252,364

35,066

23,009

310,439

2007-05-21

286,995

27,952

37,185

352,132

2007-05-22

286,392

20,627

34,334

341,353

2007-05-23

297,757

14,860

37,245

349,862

As the stocks have stood still over the 4,000 point and started accumulating strength for further growth, volatility in the market also grew. To avoid loss from payment default by borrowers, several commercial banks had a sudden brake on loan business with share pledge.

Once regarded as a needed outlet for excessive liquidity and a lucrative business for banks, now the lending on collateral of stocks became "dispensable" and too risky for banks. More maturing small loan contracts were not extended. And some one-year term loans with share pledge were withdrawn before maturity, even with an annual interest rate as high as 10 percent, according to a source with a commercial bank.


(For more biz stories, please visit Industries)