G shares lead surge in Shanghai market
10/12/2005 10:51
Dai Qian/Shanghai Daily news
Shanghai shares rose
yesterday led by companies which completed their restructuring of stock holdings
and on speculation that an index would be created for these firms. The
Shanghai Composite Index, which tracks both yuan-dominated A shares and
hard-currency B shares, surged 1.38 percent up to close at
1,113.48. The A-share index rose 1.38 percent to 1,170.81 and the
B-share index added 1.21 percent at 59.92. G shares - companies that have
finished unlocking their state shares - covered eight of the top 10 climbers,
led by optimism that a G index will be introduced. Shanghai Securities News
said yesterday that a G index covering the main boards in Shanghai and Shenzhen
will be launched in the near future. Tongfeng Electronics jumped 10.17
percent, the highest, to 3.25 yuan (41 US cents) followed by Xiangtan Electric
Manufacturing Co Ltd's 10.05 percent to 6.02 yuan. The next three gainers were
all G firms which grew over 7 percent. "There are also expectations that
investors will be able to sell G stock on the same day they buy it and that the
rise-fall range will be allowed above the current 10 percent," said Chen Qun, an
analyst at West China Securities Co. "That encouraged investors to buy these
shares." Real estate companies shone as Guangzhou Donghua Enterprise Co Ltd
rose 6.64 percent to 2.25 yuan, followed by Gemdale Corp which climbed 2.68
percent to 6.13 yuan.
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