Shares rise as startups get boost
By Ye Zhen |
August 7, 2012, Tuesday
|
Print Edition
Print Edition
SHANGHAI shares gained the most in five weeks yesterday, led by technology firms after the central government moved to broaden fundraising channels for high-tech startups.
The benchmark Shanghai Composite Index rose 1.04 percent to 2,154.92 points, the highest close in two weeks.
The State Council has approved a plan to extend a trial of over-the-counter equity trading to Shanghai, Wuhan and Tianjin, according to the China Securities Regulatory Commission.
A trial began in Beijing in 2006 in a bid to open more funding channels for technology startups.
Shanghai Zhangjiang High-Tech Park Development Co surged 9.7 percent to 8.13 yuan (US$1.28) while Suzhou New District Hi-Tech Industrial Co jumped the 10 percent daily limit to 5.12 yuan.
Li Daxiao, director of Yingda Securities Research Institute, said the move will help establish a multi-tiered capital market and give innovative firms more support.
Some analysts said the new OTC boards could divert funds from the market. However, Li said due to their small scale, the OTC boards will supplement the main stock market rather than have a negative impact.
Brokerages also gained yesterday as the expanded OTC trial will create more business. Liang Jing, an analyst at Guotai Junan Securities, said he expects brokerages to earn an additional 430 million yuan this year, 2.3 billion yuan in 2013, 8.6 billion yuan in 2014 and 29.2 billion yuan in 2015.
Citic Securities, China's biggest listed brokerage, rose 1.6 percent to 12.20 yuan. Soochow Securities Co advanced 2.7 percent to 8.66 yuan.
Xiamen Tungsten Co led gains among rare earth producers, jumping the daily limit of 10 percent to 41.87 yuan, after the Fujian government said the company would play a core role in the consolidation of the province's rare earth industry. Inner Mongolia Baotou Steel Rare-earth (Group) Hi-tech Co, China's biggest producer of rare earth materials, jumped 9.4 percent to 41.46 yuan.
The benchmark Shanghai Composite Index rose 1.04 percent to 2,154.92 points, the highest close in two weeks.
The State Council has approved a plan to extend a trial of over-the-counter equity trading to Shanghai, Wuhan and Tianjin, according to the China Securities Regulatory Commission.
A trial began in Beijing in 2006 in a bid to open more funding channels for technology startups.
Shanghai Zhangjiang High-Tech Park Development Co surged 9.7 percent to 8.13 yuan (US$1.28) while Suzhou New District Hi-Tech Industrial Co jumped the 10 percent daily limit to 5.12 yuan.
Li Daxiao, director of Yingda Securities Research Institute, said the move will help establish a multi-tiered capital market and give innovative firms more support.
Some analysts said the new OTC boards could divert funds from the market. However, Li said due to their small scale, the OTC boards will supplement the main stock market rather than have a negative impact.
Brokerages also gained yesterday as the expanded OTC trial will create more business. Liang Jing, an analyst at Guotai Junan Securities, said he expects brokerages to earn an additional 430 million yuan this year, 2.3 billion yuan in 2013, 8.6 billion yuan in 2014 and 29.2 billion yuan in 2015.
Citic Securities, China's biggest listed brokerage, rose 1.6 percent to 12.20 yuan. Soochow Securities Co advanced 2.7 percent to 8.66 yuan.
Xiamen Tungsten Co led gains among rare earth producers, jumping the daily limit of 10 percent to 41.87 yuan, after the Fujian government said the company would play a core role in the consolidation of the province's rare earth industry. Inner Mongolia Baotou Steel Rare-earth (Group) Hi-tech Co, China's biggest producer of rare earth materials, jumped 9.4 percent to 41.46 yuan.
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