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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.