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Chinese stock market sheds over IPO pressures |
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Written by Administrator
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Thursday, 13 July 2006 |
BEIJING, July 13 (InfoChina) – The Shanghai and Shenzhen composite stock indices shed by 4.84% and 5.41% respectively today over market capacity expansion pressures from concentrated pending IPOs including new heavyweights like the Industrial and Commercial Bank of China and the Daqin Railway Co., Ltd. which are estimated to raise some 20 billion yuan and 15 billion yuan respectively from the Shanghai A-share market.
Today’s fall is the second largest this year and also rarely seen over the past four years.
Anyway, technical factor is also crucial behind today’s plunge as the Shanghai and Shenzhen A-share markets have buoyed for 20 days by July 12, and today, the 21st day in the latest round of rebound, is a sensitive day to A-share investors.
A rally is likely within two or three days though it is still early to foresee the end of market corrections starting from June 7 when the Shanghai Stock Exchange Composite Index dived some 90 points to close at 1590 points, the biggest fall this year.
On July 13, Xinhua-run Shanghai Securities News reports that the Industrial and Commercial Bank of China (ICBC) plans to make IPOs of A-shares in Shanghai and H-shares in Hong Kong simultaneously within this year. The bank expects to raise 12 billion US dollars from the H-share issue and at least 20 billion yuan from the A-share issue.
If so, the A-share IPO of ICBC will be the largest on the domestic A-share market, followed by the Bank of China just quoted on the Shanghai bourse on July 5. |
China Stock News