Markets

New accounts up as bourses reopen - Wednesday

By ZHANG SHIDONG (China Daily)
Updated: 2010-03-04 11:24

SHANGHAI: Investors opened the most accounts to trade Chinese stocks last week in more than two months as the country's markets reopened following a weeklong holiday and the government extended support for the nation's industries.

Individual investors opened 330,875 accounts, data from the nation's clearing house showed on Wednesday, the most since the week ended Dec 18.

The Shanghai Composite Index rose 1.1 percent last week after the State Council said it will maintain measures to boost car and home appliance sales in rural areas. The measure has lost 6.1 percent this year on concern the country's economic rebound will lose pace as the government reins in stimulus.

"Stocks at this level are attractive and that is drawing new investors into the market," said Wei Wei, an analyst at West China Securities Co in Shanghai.

The central bank raised its reserve-requirement ratio by half a percentage point each on Jan 18 and Feb 25 in the first signs of policy tightening since June 2008.

China's growth accelerated to 10.7 percent in the fourth quarter, the fastest pace since 2007, on stimulus spending, subsidies for consumer purchases and a record bank lending last year.

A slowdown in inflation and manufacturing growth has reduced the risk of overheating in the economy.

Consumer prices increased 1.5 percent in January, slowing from growth of 1.9 percent a month earlier. A Purchasing Managers' Index (PMI) released by the government this week slid to a one-year low.

Bloomberg News