China Markets Mixed in Light Trade
The Shanghai Composite Index inched down 0.14% to close at 2,935.17, while the Shenzhen Composite Index edged up 0.19% to end at 1,099.15 on February 8. Trading volume on the Shanghai and Shenzhen Stock Exchanges was RMB 73.16 billion and RMB 53.14 billion, respectively.
Real estate stocks performed weakly on Monday, in reaction to news that China Securities Regulatory Commission has suspended approvals of real estate or real estate related listed companies to raise funds through stock market issues. Shares of Poly Real Estate Group (600048.SH) declined 7.48%, Gemdale (600383.SH) decreased 1.6% and Vanke (000002.SZ) dropped 0.87%.
Banks also slid on Monday, after rumors said that Bank of China (3988.HK, 601988.SH) and China CITIC Bank (0998.HK, 601998.SH) were planning to raise a total of RMB 49 billion in subordinated debt over the next two months. Shares of CITIC Bank dropped 2.62% and China Merchants Bank (600036.SH, 3968.HK) declined 2.26%.
On Shenzhen's ChiNext board, shares of 46 out of ChiNext's 50 listed companies rose on Monday, with stock in 22 companies rising more than 2%, xinhuanet.com reported.
The Shanghai Stock Exchange is accelerating preparatory work for the launch of an international board, the development of global exchange-traded funds (ETFs) and allowing overseas companies to issue Renminbi-dominated bonds in China, hexun.com reported citing information from a February 4 China International Finance Center meeting.
Machinery manufacturer China First Heavy Industries (601106.SH) announced public trading of shares bought through online subscription will start on the Shanghai Stock Exchange on February 9, p5w.net reported February 7.
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