BIZCHINA> Index & Statistics
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BIZCHINA> Index & Statistics
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Index breaks 3,000 barrier, 02/26
By Jin Jing (China Daily)
Updated: 2007-02-27 09:04 But analysts warned the market could face another correction after the National People's Congress and the Chinese People's Political Consultative Conference, which will be held in early March. "The excess liquidity that has been driving the rally could be absorbed by the gathering pace in the conversion of non-tradable shares to tradable shares in April after the conference," said Zhang. Stocks in the banking sector dropped yesterday in response to a hike in the bank reserve ratio. China Merchants Bank dived 5.6 percent to close at 17 yuan and Shanghai Pudong Development Bank, 5 percent. China Life, which made its debut on the Shanghai Stock Exchange on January 9 with an offer price of 37 yuan, slipped 1.5 percent to close at 37.25 yuan. The Industrial and Commercial Bank of China, the nation's biggest lender, dropped 1 percent to close at 5.1 yuan. Analysts said the 0.5 of a percentage point hike, which is expected to take only 160 billion yuan out of the stock market, will not greatly influence the stock market. "This is just a run-of-the-mill adjustment aimed at mopping up the monthly inflows from the strong trade surplus," said Jonathan Anderson, managing director of UBS Investment Research. "This is not something investors should spend any time worrying about." Many third-generation concept stocks jumped yesterday on widespread expectation that the technology will be licensed soon. Eastcom, the largest listed company in the mobile communications sector, rose to its daily limit to close at 6.6 yuan. China Unicom rose 7 percent to close at 5.4 yuan. "Many communication companies have been preparing for the introduction of the technology once the licenses are issued," said Zhang. And some listed companies carrying out asset injection activities will continue to attract a lot of investment, analysts said. (For more biz stories, please visit Industries)
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