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Market Review
Last week, Shenzhen Component Index tumbled 15.0% to 12246.1 points. SME Index closed at 8068.1 points after losing 13.3%. ChiNext Index was down 10.8% to 2605.3 points. Total turnover for stocks and funds on SZSE was US$542.2 billion, or a 23.7% increase from the week before.
All sector indices were lower than previous week. Sector indices with the biggest drops were conglomerates, hotels & catering and transportation and logistics.
Top 3 gainers were Shenzhen Wenke (002775), Shenzhen Prolto (002769) and Beijing Transtrue (002771). Top 3 decliners were Jiangsu Skyray (300165), Shenzhen Esun Display (002751) and Beijing Tianli (300399). The most active stocks for the last week were Boe Technology (000725), Gree Electric (000651) and East Money (300059).
Market News
Shenzhen Stock Exchange to reduce transaction fees
The Shanghai and Shenzhen Stock Exchanges are set to decrease transaction fees, effective from August 1, by approximately 30 per cent. Fees are adjusted downward to 0.0487 per millage from 0.0696 per millage of the transaction volume for A-share trading, with 20% of the charges transferred to an investor protection fund.
CSRC Published Revised Measures on Securities Firms Margin Trading and Securities Lending Business
The CSRC officially published the revised Measures on Securities Firms Margin Trading and Securities Lending Business on 1st July, which removes the strict rules on the draft version for public soliciting. Under the new rules which features counter cyclical adjustment principle, securities companies’ margin trading and securities lending business shall not larger than 4 time as their net asset, and securities firms are given more flexibility in contract expansion and collateral treatment in case of margin call.
CSF Gets More Resources for Margin Loans
CSRC announced that, the China Securities Finance Corporation (CSF), which facilitates margin loan services among brokerages, will see a boost of registered capital from 24 to 100 billion Yuan to stabilize the market. Also, the CSF will raise funds through multiple channels to expand the scale of business and maintain the stability of the capital market.
CSRC reduces the No. of IPOs and amount of funds to be raised
The China Securities Regulatory Commission (CSRC) announced on July 3 that it will reduce the number of IPOs and the amount of funds to be raised. 10 companies have launched the IPO in early July, while the amount of fundraised will reduce compared to that in June.
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