Index suffers longest losing run in 3 months
By Ye Zhen |
March 13, 2013, Wednesday
|
Print Edition
Print Edition
SHANGHAI stocks suffered the longest losing streak in three months when they fell for a fourth consecutive day yesterday after the central bank withdrew funds via open market operations.
The Shanghai Composite Index lost 1.04 percent to 2,286.61 points. Yesterday's loss pared the benchmark index's gain this year to 0.8 percent.
The People's Bank of China withdrew 26 billion yuan (US$4.1 billion) from the domestic money market through 28-day repurchase agreements, more than the 5 billion yuan it took out last week.
"Sensitive investors were spooked by the suddenly enlarged repos and the withdrawal may post a negative impact on market liquidity," said Liu Kan, a Guoyuan Securities analyst.
Speculation that regulators may resume initial public offerings was also mounting after the China Securities Journal reported yesterday, citing investment banks, that companies seeking IPOs are expected to submit reports on self-examination of their financial statements starting next week to meet the end-March deadline.
Brokerages declined because the gross revenue of 19 listed securities companies tumbled 26 percent in February to 4.9 billion yuan and their combined net profit plunged 30.5 percent to 1.9 billion yuan.
CITIC Securities, China's biggest listed broker, shed 1.1 percent to 13.54 yuan. Everbright Securities Co lost 1.4 percent to 13.92 yuan and China Merchants Securities Co dropped 1.1 percent to 13.50 yuan.
Lenders also fell after the China Securities Journal reported that the China Banking Regulatory Commission was investigating wealth management products.
China Minsheng Banking Corp declined 4.7 percent to 9.74 yuan. Shanghai Pudong Development Bank lost 1.7 percent to 10.29 yuan, and China Merchants Bank shed 1.7 percent to 12.90 yuan.
The Shanghai Composite Index lost 1.04 percent to 2,286.61 points. Yesterday's loss pared the benchmark index's gain this year to 0.8 percent.
The People's Bank of China withdrew 26 billion yuan (US$4.1 billion) from the domestic money market through 28-day repurchase agreements, more than the 5 billion yuan it took out last week.
"Sensitive investors were spooked by the suddenly enlarged repos and the withdrawal may post a negative impact on market liquidity," said Liu Kan, a Guoyuan Securities analyst.
Speculation that regulators may resume initial public offerings was also mounting after the China Securities Journal reported yesterday, citing investment banks, that companies seeking IPOs are expected to submit reports on self-examination of their financial statements starting next week to meet the end-March deadline.
Brokerages declined because the gross revenue of 19 listed securities companies tumbled 26 percent in February to 4.9 billion yuan and their combined net profit plunged 30.5 percent to 1.9 billion yuan.
CITIC Securities, China's biggest listed broker, shed 1.1 percent to 13.54 yuan. Everbright Securities Co lost 1.4 percent to 13.92 yuan and China Merchants Securities Co dropped 1.1 percent to 13.50 yuan.
Lenders also fell after the China Securities Journal reported that the China Banking Regulatory Commission was investigating wealth management products.
China Minsheng Banking Corp declined 4.7 percent to 9.74 yuan. Shanghai Pudong Development Bank lost 1.7 percent to 10.29 yuan, and China Merchants Bank shed 1.7 percent to 12.90 yuan.
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