英文: Shenzhen shares close morning sharply higher on govt moves to push up prices A- and B-share prices closed the morning sharply higher on further indications that the government is launching a program aimed at pushing up share prices, dealers said.
Shares gained sharply on Friday following publication of an editorial in the official China Securities Journal which was apparently aimed at boosting investor confidence and was seen by many as confirmation of rumours that the government is implementing a ten-point package aimed at driving share prices higher.
This was followed over the weekend by the publication of a similar editorial on Saturday, as well as the publication of reports that the government has given up a plan to sell off state shares via the stock market and the publication of provisional regulations raising the threshold for listed companies seeking to launch additional share offers.
All of these actions appeared to confirm the rumours of a ten-point market-boosting package, they said.
The component A- and B-share index closed 257.64 points higher at 3,438.58 on turnover of 24.02 bln yuan after trading to a high of 3,488.33 and a low of 3,372.79.
The A-share sub-index rose 281.73 points to 3,800.77 after trading between 3,857.75 and 3,731.87.
The B-share sub-index closed 117.88 points higher at 1,445.79 after trading between 1,460.45 and 1,405.32.
Analysts said there had been widespread expectations that the government would step up its efforts to push up share prices after the composite index 0dropped below a key level at 1,500 points.
Many investors consider 1,500 points the market s policy bottom amid a belief that the government is not prepared to allow prices to correct below that level. Some analysts said they believe the government is determined to generate a market rally in the run-up to the Communist Party s 16th Congress in autumn.
However, others said the government may merely be seeking to heighten the market s ability to channel funds to cash-strapped state enterprises, and noted that institutions, who tend to take a longer-term view of stock investment, appear to be taking profits as retail investors carry out strong buying.
Angang New Steel closed 0.17 yuan higher at 3.97 on volume of 59.7 mln shares, while Shenzhen Development Bank closed 1.19 yuan higher at 13.10 on 55.3 mln shares.
FAW Car gained 0.46 to 5.73 on 27 mln shares.
Shenzhen SEZ Real Estate rose 1.02 to 11.21 on 21.2 mln shares.
Among B-shares, Chongqing Changan gained 0.3 hkd to 3.28 on 12.4 mln shares, while Shenzhen SEG rose 0.34 to 3.77 on 4.8 mln shares and Guangdong Electric Power rose 0.41 to 5.25 on 7 mln shares.