Related News
Market pressure mounts as locked shares become tradable
By Lydia Chen |
August 1, 2011, Monday
|
Online Edition
Online Edition
MAINLAND bourses are facing a grim August when a spate of unlocked shares floods the market this month.
A total of 27.83 billion locked shares will become tradable in August, compared with 11.88 billion last month. And their total market value is expected to jump by 52 percent from July to 223.5 billion yuan (US$34.70 billion).
Almost 5.57 billion shares will be unlocked this week, up nearly 40 percent from last week and worth about 52.7 billion yuan in market value based on closing prices last Friday, compared with 35.2 billion yuan last week.
The number of shares to be unlocked in the second half of this month will total 21.85 billion shares, offered by 40 companies and making up 68 percent of the whole block this month.
Meanwhile, new listings may be another factor to weigh on the markets. Nine initial public offerings have lined up for debut this week, the most in five months.
Mainland markets have been volatile for more than two weeks amid investor concerns over the exposure of Chinese banks' massive loans through local government financing vehicles.
China International Capital Corp suggested in a note today that investors better keep their stockpile low this month since factors "negative" to the markets are increasing.
The A-share markets may follow overseas markets to enjoy a rally after US lawmakers reached a debt deal yesterday, which could be the perfect timing for investors to sell their shares, the leading Chinese investment bank suggested.
A total of 27.83 billion locked shares will become tradable in August, compared with 11.88 billion last month. And their total market value is expected to jump by 52 percent from July to 223.5 billion yuan (US$34.70 billion).
Almost 5.57 billion shares will be unlocked this week, up nearly 40 percent from last week and worth about 52.7 billion yuan in market value based on closing prices last Friday, compared with 35.2 billion yuan last week.
The number of shares to be unlocked in the second half of this month will total 21.85 billion shares, offered by 40 companies and making up 68 percent of the whole block this month.
Meanwhile, new listings may be another factor to weigh on the markets. Nine initial public offerings have lined up for debut this week, the most in five months.
Mainland markets have been volatile for more than two weeks amid investor concerns over the exposure of Chinese banks' massive loans through local government financing vehicles.
China International Capital Corp suggested in a note today that investors better keep their stockpile low this month since factors "negative" to the markets are increasing.
The A-share markets may follow overseas markets to enjoy a rally after US lawmakers reached a debt deal yesterday, which could be the perfect timing for investors to sell their shares, the leading Chinese investment bank suggested.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
