Related News
Warnings about local market
By Winny Wang |
June 26, 2009, Friday
|
Print Edition
Print Edition
CHINA'S A-share market may plummet in the second half this year due to the resumption of sales of new shares and the underperformance of corporate earnings in the first half, said major brokerages, including Guotai Jun'an and Shenyin and Wanguo.
This may be accompanied by tight liquidity as more companies are expected to issue new shares, which will greatly raise the amount of shares being traded on the market in the medium term, said Shenyin and Wanguo Securities Co in a report yesterday.
"But the inflow of overseas capital will ease the liquidity pressure in the domestic market to some extent," the securities house said.
Guilin Sanjin Pharmaceutical Co and Zhejiang Wanma Cable Co will be the first two companies to launch initial public offerings after a nine-month suspension of IPOs by the China Securities Regulatory Commission.
More than 30 companies, including China State Construction Engineering Co, Everbright Securities Co and China Merchants Securities Co, have been waiting to list on the main board after winning regulatory approval. They are expected to offer more than 70 billion yuan (US$10.25 billion) worth of new shares between them.
The brokerage suggested investors focus on real estate, banking and the insurance sector before overseas capital flows in. It estimated that the Shanghai Composite Index would fluctuate between 2,300 and 3,150 points.
Guotai Jun'an Securities estimated that first-half corporate earnings for listed companies would be down more than 10 percent on a yearly basis.
"But we are still confident that the stock market will rise in the second half, though with narrower growth than in the first half thanks to a loose policy environment and better second-half corporate earnings," it said.
It told investors to focus on financial, real estate and construction materials firms and machinery equipment companies.
Haitong Securities Co was more pessimistic about the trend in the second half and expected the market to undergo a correction.
Haitong attributed possible falls to the slowdown of economic growth and falling liquidity caused by the expiry of lock-up periods and the resumption of IPOs.
This may be accompanied by tight liquidity as more companies are expected to issue new shares, which will greatly raise the amount of shares being traded on the market in the medium term, said Shenyin and Wanguo Securities Co in a report yesterday.
"But the inflow of overseas capital will ease the liquidity pressure in the domestic market to some extent," the securities house said.
Guilin Sanjin Pharmaceutical Co and Zhejiang Wanma Cable Co will be the first two companies to launch initial public offerings after a nine-month suspension of IPOs by the China Securities Regulatory Commission.
More than 30 companies, including China State Construction Engineering Co, Everbright Securities Co and China Merchants Securities Co, have been waiting to list on the main board after winning regulatory approval. They are expected to offer more than 70 billion yuan (US$10.25 billion) worth of new shares between them.
The brokerage suggested investors focus on real estate, banking and the insurance sector before overseas capital flows in. It estimated that the Shanghai Composite Index would fluctuate between 2,300 and 3,150 points.
Guotai Jun'an Securities estimated that first-half corporate earnings for listed companies would be down more than 10 percent on a yearly basis.
"But we are still confident that the stock market will rise in the second half, though with narrower growth than in the first half thanks to a loose policy environment and better second-half corporate earnings," it said.
It told investors to focus on financial, real estate and construction materials firms and machinery equipment companies.
Haitong Securities Co was more pessimistic about the trend in the second half and expected the market to undergo a correction.
Haitong attributed possible falls to the slowdown of economic growth and falling liquidity caused by the expiry of lock-up periods and the resumption of IPOs.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
