Weekly Review: China's A-share MarketsChina's two A-share markets in Shanghai and Shenzhen were mixed most of this week on Monday £¬Tuesday and Thursday and Friday.Both A-share bourses declined on Wednesday. The Shanghai composite index created another new high at 2210.86 on Monday morning £¬ according to Homeway£¬ a leading financial and securities advisory company in China. Shanghai Composite Index edged down to close at 2193.58 points on Friday£¬ 9.79 points less than last Friday's close at 2203.37 points£¬ and the weekly turnover for A shares shrank to 66.41 billion yuan £¨US$8.02 billion £©£¬ compared with the last week's total at approximately 73.81 billion yuan£¨US$8.9 billion£©. Shenzhen Composite Sub-index ended at 4831.99 points on Friday£¬33.74 points less than last Friday's close at 4865.73 points. The A-share weekly trading value increased to 44.01 billion yuan £¨US$5. 32 billion£©£¬ compared with the last week's total at approximately 42.37 billion yuan (US$5.12 billion). There was one company debuting on the Shanghai Stock Exchange on Thursday. Sichuan Guodong Construction Co.£¬ Ltd. £¨600321.SS £©debuted its 70 million A shares on the Shanghai bourse on Thursday morning. The company £¬ which manufactures glass products£¬ and glass- related machines and equipment£¬ issued 70 million A shares at the issuing price of 12.28 yuan on March 16 2001. After the issuance£¬its capital stock totals 175 million A shares £¬ and net asset per share is 5.63 yuan. At the market close on Thursday£¬ the company surged 110.02% to 25.79 yuan from its issuing price at 12.28 yuan. At Monday close £¬ Hubei Qianjiang Pharmaceutical Co. £¬ Ltd£¨600568.SS£©£¬ which soared last Friday£¬ slipped the most £¬ and Beijing Ufsoft Co. £¬ Ltd.£¨600588.SS £©£¬ which also surged greatly last Friday£¬ was among the top five decliners on the Shanghai losers' list £¬ and also dragged down other software shares. Beijing Ufsoft was the top loser at Thursday close. Wednesday's A-share market declines may be mainly caused by three factors. First £¬ investors felt pressures from market expansions£¬ such as reduction of state-owned shares £¬ more new share issues and new share placement. Second £¬ investors felt concerned about the B- share market. Risks had come along with successive big rises on the B-share market£¬ indicating that B-share corrections will drag A shares down. The third factor was technical pressure. A-share markets may need technical corrections. The Shanghai composite index fell to 2181 points Friday afternoon and then edged up to lose a few points to end Friday's trade£¬ while the Shenzhen composite sub-index moved in a similar trend as its Shanghai counterpart £¬ but edged up to be in the positive territory at Friday close. Market outlook£º The A-share markets are likely to fluctuate and consolidate next Monday. |
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