Latest News:  
Beijing   Cloudy/Overcast    24 / 32 ℃  City Forecast

English>>China Business

Mainland stocks rally on draft, investors await June CPI growth data

By Yu Xi  (Global Times)

08:46, August 07, 2012

Markets in Shanghai and Shenzhen registered solid gains Monday after the country's securities regulator issued a draft regulation late Sunday that would pave the way for staff at listed firms to take equity positions in their companies.

The Shanghai Composite Index added 22.12 points, or 1.04 percent, to close at 2,154.92; while the Shenzhen Component Index tacked on 1.49 percent, or 135.58 points, to finish at 9,212.20.

Both markets opened lower Monday, but climbed up throughout most of the morning session on strong showings from the developmental zone, environmental protection and rare earth sectors. Gains in coal, cement and petrochemical stocks gave the markets further support in afternoon trading.

The China Securities Regulatory Commission (CSRC) unveiled a draft regulation late Sunday that would open the door for staff members at listed companies to purchase shares in their own companies on the secondary market. Employees would be required to hold these shares for at least 36 months, a demonstration of faith that would likely spur investor confidence and thus buoy the prices on these stocks, analysts say.

This latest move by the CSRC is yet another measure aimed at boosting confidence in the country's unruly equity market, say analysts. Late last week, the regulator announced that it would cut trading fees at domestic bourses in order to take some of the financial pressure off investors.

Meanwhile, with several major economic indicators for July set to be released next week, investors are waiting to see how much China's consumer price index (CPI) expanded last month. Many in the market are predicting the growth rate to clock in below 2 percent, which may give the government more space to loosen monetary policy, according to analysts.

News we recommend:
Luxury brands continue to cash in on China market Rare earth regulation justified Growth to bounce back in H2
Lamborghini sees 20-30% rise in supercar sales Ad campaigns are competing hard in London Major lenders broaden horizons and flex financial muscles
US takes trade remedy actions against China  Chinese prefer foreign brands Mascot maker feels pinch of rising labor costs

Email|Print|Comments(Editor:李倩、厉振羽)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. PLA officers and men in drill

  2. Russian girls go retro on bicycle

  3. US takes trade remedy actions against China

  4. 11th animation cosplay contest held in Lanzhou

  5. Top Tips for Olympic Quality Sports Photos

  6. Orphaned kangaroo, wombat become friends

Most Popular

Opinions

  1. Clinton visit won't affect China-Africa ties
  2. Washington stuck in political paralysis
  3. Commentary: Outlook not that pessimistic
  4. Editorial: Mission for eurozone leaders
  5. UN resolution adds pressure to Syria gov't
  6. What is wrong with products made in China?
  7. Indian blackout: result of neglect of livelihood
  8. Editorial: Economic food for thought
  9. Detachment no serves China's interest in ME
  10. US sanctions on China's bank ridiculous

What's happening in China

Train kills woman who ignored alarm at Wudaokou railroad crossing

  1. More charity chain stores for Beijing
  2. Major crackdown in fake medicine scam
  3. Compensation sought from train crash
  4. Haikui approaching China's eastern coast
  5. 79 dead in Beijing devastating rainstorm

China Features

  1. Why Hollywood favores China's actresses?
  2. Dongfeng Honda to recall 76,000 CR-Vs
  3. How to protect yourself during heavy rainstorms?
  4. Are synthetic drugs toxic?
  5. Amway vitamin C tablets short in weight

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai