Index slumps to lowest level since 2009
By Ye Zhen |
July 31, 2012, Tuesday
|
Print Edition
Print Edition
SHANGHAI shares plunged to the lowest level since March 2009 yesterday after the Shanghai Stock Exchange unveiled a draft rule to simplify delisting rules in a bid to deter speculators.
The draft fanned concern more companies will be delisted.
The Shanghai Composite Index retreated 0.89 percent to settle at 2,109.91 points.
The Shanghai Stock Exchange announced on its website last Friday that it proposed to lower the upper limit on daily price swings for both ST and *ST shares from 5 percent to 1 percent, and keep the lower limit at 5 percent.
Under the listing rules, listed companies operating at losses for two straight years will be marked under special treatment, or ST shares, while those operating at losses for three straight years will be marked *ST shares. The latter will be delisted if it fails to return to profit or restructure within six months.
Liu Ying, an analyst at Huatai Securities, said the draft guideline is good for the healthy development of the capital market in the long term, but it will deal a heavy blow in the short term to ST shares.
Data showed 107 of 168 special treatment shares listed on both Shanghai and Shenzhen markets fell by the daily limit of 5 percent yesterday.
Insurers had a rough day yesterday as investors feared damage claims related to Beijing floods may dent earnings, said Xie Jiyong at Capital Securities Corp.
As of July 29, insurers in Beijing received damage claims totaling around 900 million yuan for the July 21 flood, the China Insurance Regulatory Commission Beijing Bureau said yesterday.
The draft fanned concern more companies will be delisted.
The Shanghai Composite Index retreated 0.89 percent to settle at 2,109.91 points.
The Shanghai Stock Exchange announced on its website last Friday that it proposed to lower the upper limit on daily price swings for both ST and *ST shares from 5 percent to 1 percent, and keep the lower limit at 5 percent.
Under the listing rules, listed companies operating at losses for two straight years will be marked under special treatment, or ST shares, while those operating at losses for three straight years will be marked *ST shares. The latter will be delisted if it fails to return to profit or restructure within six months.
Liu Ying, an analyst at Huatai Securities, said the draft guideline is good for the healthy development of the capital market in the long term, but it will deal a heavy blow in the short term to ST shares.
Data showed 107 of 168 special treatment shares listed on both Shanghai and Shenzhen markets fell by the daily limit of 5 percent yesterday.
Insurers had a rough day yesterday as investors feared damage claims related to Beijing floods may dent earnings, said Xie Jiyong at Capital Securities Corp.
As of July 29, insurers in Beijing received damage claims totaling around 900 million yuan for the July 21 flood, the China Insurance Regulatory Commission Beijing Bureau said yesterday.
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