Brokerages fuel rise in shares
By Ye Zhen |
August 4, 2012, Saturday
|
Print Edition
Print Edition
SHANGHAI shares gained the most in five weeks yesterday after the top securities regulator cut transaction fees in an effort to boost investor confidence.
The Shanghai Composite Index climbed 1.02 percent to 2,132.8 points.
The index gained 0.19 percent this week, ending a six-week losing streak.
The China Securities Regulatory Commission announced on Thursday that it will cut the stock transaction fees by 20 percent, effective on September 1.
The third cut this year will save investors 600 million yuan (US$95.2 million) in trading costs in the remaining four months of this year, the regulator said on its website.
Some analysts welcomed the cut as it will improve market vitality amid a sluggish economy. Li Daxiao, director of Yingda Securities Research Institute, said the cut will have a positive effect on market confidence.
However, Zeng Qing at Ping An Securities said investors and the market will benefit very little from the move as trading fees are paid by brokerages to the bourse. Thus brokerages will gain the most from the cut, Zeng said.
Sinolink Securities Co paced gains for brokerages, adding 3.2 percent to finish at 11.99 yuan. Founder Securities Co climbed 2.3 percent to 4.54 yuan. Citic Securities, China's biggest listed brokerage, rose 0.4 percent to close at 12.01 yuan.
The Shanghai Composite Index climbed 1.02 percent to 2,132.8 points.
The index gained 0.19 percent this week, ending a six-week losing streak.
The China Securities Regulatory Commission announced on Thursday that it will cut the stock transaction fees by 20 percent, effective on September 1.
The third cut this year will save investors 600 million yuan (US$95.2 million) in trading costs in the remaining four months of this year, the regulator said on its website.
Some analysts welcomed the cut as it will improve market vitality amid a sluggish economy. Li Daxiao, director of Yingda Securities Research Institute, said the cut will have a positive effect on market confidence.
However, Zeng Qing at Ping An Securities said investors and the market will benefit very little from the move as trading fees are paid by brokerages to the bourse. Thus brokerages will gain the most from the cut, Zeng said.
Sinolink Securities Co paced gains for brokerages, adding 3.2 percent to finish at 11.99 yuan. Founder Securities Co climbed 2.3 percent to 4.54 yuan. Citic Securities, China's biggest listed brokerage, rose 0.4 percent to close at 12.01 yuan.
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