The China Securities Regulatory Commission (CSRC) has released preliminary rules outlining the operational requirements for brokers seeking to offer margin trading and other businesses, according to a draft published on the commission’s website.
The rules include a provision holding brokers responsible for educating margin investors.
“Securities companies which obtain approval to offer new business categories of securities brokering, asset management and margin trading, should take effective measures in informing investors of relevant laws and risks,” according to the draft, which has been released for public comment.
The introduction of margin trading services has been widely anticipated by investors as a measure to encourage trading and prop up prices.
Property prices in 70 major Chinese cities rose 5.3 percent year-on-year in August, compared with 7.0 percent in July, the National Development and Reform Commission said.
In a statement posted on its website, the commission said prices of new residential property rose 6.2 percent year-on-year in August, down 1.7 percentage points compared to July’s growth.
Cities where property price growth exceeded 10 percent year-on-year last month included Haikou, Yinchuan and Beijing with growth rates of 16.5 percent, 12.4 percent and 11.7 percent, respectively.
Prices of homes for resale rose 3.9 percent year-on-year in August, 2.1 percentage points below the July rate.
Non-residential property prices grew 4.0 percent last month, down 0.9 percentage points from July.
China, theworld’s largestcellphoneexporter, isexpectedtomaintainmomentum in bothproductionandmarketingof mobile phones in theremainingofthisyear, CCID Consulting, a major IT industryconsultingcompany, saidonSunday.
Thecompanypredictedthat China wouldproduce 605 millioncellphonesforthewholeof 2008, a growthof 16.9 percentover last year, andsell 205 millionathome, up 17.55 percent. Theforeignsaleswouldamountto 400 millionunits, up 16.79 percent.
FromJanuaryandJune, accordingtoCCID Consulting, 279 millioncellphoneswereproducednationwide, up 21.2 percentonthesameperiodof last year, and 96.403 millionweresold, up 17.52 percent. Exports totaled 182 millionunits, up 22.74 percent.
Nokia, Samsungand Motorola claimednearlytwothirdsofthe Chinese cellphonemarket, withtheFinnishcompanyNokiataking a 41.02 percentshare. (source ChinaDaily.com)
BEIJING (XFN-ASIA) - China South Locomotive & Rolling Stock Corp Ltd (SHA 601766) said it raised 6.54 bln yuan from the issue of 3 bln A-shares on the Shanghai Stock Exchange, after pricing the shares at 2.18 yuan, the top of its indicated range.
The A-share pricing is 16.03 times 2008 projected net profit based on Chinese accounting standards, the company said in a statement to the Shanghai Stock Exchange.
About 600 mln A-shares, or 20 pct, will be sold to institutional investors, and the remainder will be sold to retail investors.
The fund-raising exercise generated combined 2.26 trln yuan in institutional and retail share applications.
China International Capital Corp and Industrial Securities Co Ltd are joint lead underwriters for the IPO.
The company also plans to issue up to 1.6 bln H-shares on the Hong Kong stock market, representing up to 13.79 pct of its enlarged share capital.
The company, which also kicks off its Hong Kong IPO roadshow on Monday, plans to raise 566 mln usd by issuing selling 1.6 bln H-shares at 2.49-2.76 hkd, a source told XFN-Asia earlier.
In China, stock trading first started in Shanghai. The first trades are going back to the 1860s. In 1891 the Shanghai Stockbroker Association was established. This was the start of regulatedChinese stock markets. Later in 1920 and 1921, the “Shanghai Security Goods Exchange” and the “Shanghai Chinese Securities Exchange” started business. Almost10 yars later in 1930, Shanghai became the leading financial city in the far east. During this time, Chinese and Foreign investors were trading stocks, t-bonds and futures. 1946 the “Shanghai Securities Exchange Ltd.” was established on the basis of the “Chinese Security Exchange”. But already three years later the exchange had to stop business because of political changes in China.
Since 1980, under the guidance of Deng Xiaoping, the financial markets developed parallel to the changes and reforms of the Peoples Republic of China. In 1981, trading of treasury bonds resumed and in 1984 also the trading of stocks and corporate bonds were allowed again. The most important trading place was Six years later the Shanghai Stock Exchange (SSE) was officially formed on November 26th 1990. In the same year on December 19th the official trading resumed.
Just a couple of years in business, Shanghai became the leading financial market place in Mainland China. The SSE lists most of the companies and stocks, and has the biggest market value and stock trading volume. The year 2007 was very successful for the SSE. The exchange served , more than 71.3 milion investors, 860 listed companies witha total market capitalization of RMB 26.98 trillion and raised capital for RMB 661.6 billion through the SSE. A large number of companies from key industries, infrastructure and high-tech sectors, have not only raised capital, but also improved their operation mechanism through listing on Shanghai stock market.
Contact details:
Shanghai Stock Exchange
Address: 528 South Pudong Road, Shanghai 200120, PR China
Email: webmaster@secure.sse.com.cn Web Site: www.sse.com.cn
Shenzhen is located north of Hong Kong in south China’s Guangdong Province. The population is around 10 mio. people. Together with Zhuhai and Shantou, Shenzhen became the first city in the “Special Economic Zone” of the People’s Republic of China in November 1988. At that time Shenzhen was no more than farm land and a forest area. Foreign countries and the Chinese government invested billions of USD in the development of the land and business infrastructure of this region after China opened the doors to the Western world. Foreigners especially invested in factories and the government in the infrastructure of the cities. Today Shenzhen is one of the most developed and fastest growing cities not only in China, but in the world. From start and till nowadays many Chinese people from rural areas are coming from the mainland to search for jobs and fortune and women are searching for a rich husband from Hong Kong. The average age of the population is below 30 years and on each man one can count 2 women in the town. Shenzhen is China’s leading electronic, technology and fine jewelry manufacturing city in China.
Mainland China has two stock exchanges. The biggest one is in Shanghai and the second in Shenzhen. The stock markets in Hong Kong and Taiwan (Chinese Taipei) belong to Greater China.
The Chinese Nasdaq
From 2000-2004 there were no IPO listings in Shenzhen. The number of tradable stocks decreased from 557 in 2000 to 548 to the end of 2003. In 2004 Shenzhen started again to list IPO’s. Until July 2008 the number of stocks increased by nearly 50% to 769. The decreased number of stocks was the result of first changes in the rules and regulations of Chinese stock markets. From start the SSE specialized in fast growing technology and private companies. The role model for this change was the Nasdaq in USA. The SSE is calling this niche SME, Small and Medium Enterprises Board. The background for this decision is, that Shenzhen is Chinas leading technology and high-tech city. Electronics, technology and fine jewelry are the two main business industries in Shenzhen. The city also has the world’s largest electronic market, which is called Hua Qiang Bei.
Contact details:
Shenzhen Stock Exchange
Address: 5045 Shennan East Road, Shenzhen, China 518010
