Index rises but suffers big weekly loss of 1.4%
By Hu Xiaocen |
March 17, 2012, Saturday
|
Print Edition
Print Edition
SHANGHAI stocks rallied yesterday as the securities watchdog urged companies to fully disclose the reasons for not paying dividends, and consumer companies rallied on hope they will benefit from government measures to boost domestic demand.
The Shanghai Composite Index jumped 1.3 percent to 2,404.74 points, registering a weekly loss of 1.4 percent, the biggest fall since January.
The China Securities Regulatory Commission urged companies to specify reasons for not paying dividends, China Securities Journal reported yesterday. Firms will also be required to disclose information about the use of unallocated capital.
"The purpose is to increase returns to shareholders and improve corporate governance," said a director of the Investor Protection Bureau under the watchdog.
Market sentiment was lifted by the statements.
Premier Wen Jiabao has said: "Expanding domestic demand, particularly consumer demand, is essential to China's economic development." He cut China's economic growth to 7.5 percent this year, which Hou Ning, an independent financial commentator, said was a good sign for the market because it shows the country's determination to change its growth mode.
"To save the stock market is to save the economy. Market sentiment reflects investor confidence. A cut in growth target shows the government's determination in economic transition, which strengthens investors' confidence in the future," Hou said.
Kweichow Moutai Co, a premium liquor producer, rallied 4.35 percent to 207.59 yuan (US$32.83). Bright Dairy and Food Co jumped 8.11 percent to 9.87 yuan.
The Shanghai Composite Index jumped 1.3 percent to 2,404.74 points, registering a weekly loss of 1.4 percent, the biggest fall since January.
The China Securities Regulatory Commission urged companies to specify reasons for not paying dividends, China Securities Journal reported yesterday. Firms will also be required to disclose information about the use of unallocated capital.
"The purpose is to increase returns to shareholders and improve corporate governance," said a director of the Investor Protection Bureau under the watchdog.
Market sentiment was lifted by the statements.
Premier Wen Jiabao has said: "Expanding domestic demand, particularly consumer demand, is essential to China's economic development." He cut China's economic growth to 7.5 percent this year, which Hou Ning, an independent financial commentator, said was a good sign for the market because it shows the country's determination to change its growth mode.
"To save the stock market is to save the economy. Market sentiment reflects investor confidence. A cut in growth target shows the government's determination in economic transition, which strengthens investors' confidence in the future," Hou said.
Kweichow Moutai Co, a premium liquor producer, rallied 4.35 percent to 207.59 yuan (US$32.83). Bright Dairy and Food Co jumped 8.11 percent to 9.87 yuan.
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