Top Biz News
Chinese shares dip as Lunar New Year weighs new policies
(Xinhua)
Updated: 2010-02-23 09:33
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According to Li Quan, vice president of Bosera Funds Management Co Ltd, stock index futures and margin trading business will allow traders to hedge their positions and be a mechanism for stabilizing price fluctuations.
Such innovations are usually an opportunity for speculation after they launch, said Gui Haoming, chief analyst with the research institute of Shenyin-Wanguo Securities.
Most analysts believe that, against a backdrop of moderate inflation, profitability of listed companies will improve steadily, and that it is worthy paying attention to emerging sectors like low-carbon businesses and new energy.
They agreed fundamental factors, mainly the economic recovery and increased corporate profitability, will be the driving forces behind the Chinese stock markets this year.
According to TX Investment Consulting Co, the 143 listed companies that had released 2009 corporate earnings reports by Feb 11 had recorded 26.37 billion yuan ($3.87 billion) in net profit, up 26 percent from the 2008 level.
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However, pressure will come from further market expansion.
The Shanghai and Shenzhen bourses edged into the world's top three in January in terms of money raised through initial public offerings, or IPOs.
Seven out of the world's top 10 IPOs last month were made by Chinese firms.
According to accounting firm Price Waterhouse Coopers, 320 billion yuan will be raised in IPOs on Chinese markets in 2010.
The accountant firm also predicted that if the international board launches this year, at least 100 billion yuan will be raised. The international board is designed for foreign companies to list on the Chinese mainland.
