66 listing companies stop trading after Sichuan earthquake
13/5/2008 16:41
The strong earthquake in southwest China's Sichuan Province yesterday has
made 66 stock listing companies stop trading as of today.
These Sichuan and
Chongqing-based companies include 45 Shanghai listed companies and 21 Shenzhen
listed companies, such as Sichuan Road and Bridge, Huiyuan Optical Communication
and Datong Gas. The stock exchange failed to contact the companies after the
earthquake.
People close to the Shanghai Exchanges said some of the companies
may contact the exchanges in the next two days and relevant information will be
published tomorrow.
A 7.8-magnitude earthquake rocked Wenchuan County in
Sichuan Province at 2:28 p.m. yesterday, and more than 1,000 aftershocks have
been recorded.
The death toll caused by the earthquake climbed to 9,219 by
this morning.
These companies will restart trading when they release relevant
information to the public.
Analyst from the Research Center of Changjiang
Securities said investors may face psychological shock, but the earthquake has a
limited impact on the county's overall economy and profits of listing
companies.
Earthquake has brought the capital market with tremendous
psychological impact, especially for those companies engaging in the business of
infrastructure, transportation, water and electric power.
Most of the stock
trading system in southwest areas operated smoothly by 9:00 pm yesterday,
although the aftershocks were persistently recorded.
Some securities trading
outlets in northwest areas decided to stop on-the-spot trading, and suggested
the investors do their transaction over the telephone and internet for safety's
sake.
Earthquake may hinder investors' trading to a certain degree in the
near future, said analyst.
On reaction to the strong earthquake, Chinese
shares opened 3.07 percent lower today, with the benchmark Shanghai Composite
Index, which covers both A and B shares, opened at 3,515.71 points, down 3.07
percent.
The Shenzhen Component Index on the Shenzhen Stock Exchange opened
at 12,727.76 points, losing 3.33 percent.
Xinhua
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