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BIZCHINA> News
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Stock index rockets to new high
By Li Zengxin (chinadaily.com.cn)
Updated: 2007-05-28 16:24 Analysts attributed today's stable but fast growth to a slew of good news, including chairman Shang Fulin of the China Securities Regulatory Commission (CSRC) describing asset securitization as a strategic fund-raising vehicle to drive the country's new round of development, and Xiang Huaicheng, chairman of the National Council for Social Security Fund (SSF), clarifying that SSF will not reduce A-share holdings. The extraordinary performance of China's stock market since the second half of 2006 has attracted more companies to list on the two domestic bourses. Companies making initial public offerings (IPOs) usually saw their shares hundreds of times oversubscribed and their prices rocketing when listed on the boards. Their underwriters also hit the gold mine by helping them to go public. The stock market welcomed 43 new stocks in the first five months till last Friday, with underwriting fees totaling 2.493 billion yuan. China Galaxy Securities, China International Capital Corp (CICC) and CITIC Securities were the top three underwriters, taking up 55 percent or 1.372 billion yuan of the total fee income. Galaxy Securities was involved in the underwriting for the IPOs of China Life, Bank of Communications and Ping An of China. The three index-driven stocks raised 92.4 billion yuan from their IPOs and Galaxy had 570 million yuan in underwriting fee. Galaxy was followed by CICC, which realized an underwriting fee of 440 million yuan from the IPOs of CITIC Bank and China Life, with a total underwriting value of 41.67 billion yuan. CITIC Securities was the major underwriter for Ping An and Bank of Communications. It also underwrote Tianjin Pulin, listed on the small- and medium-sized enterprise board in Shenzhen. From the listings that raised 64.5 billion yuan, CITIC was paid 362 million yuan for its services. Besides, the China Securities Regulatory Commission has issued a series of measures in a bid to fight against illegal conducts such as insider trading, price manipulation and false information disclosure. As the latest move, the Shanghai Stock Exchange issued a new rule today, requiring all *ST (special treatment) and ST companies to inform their controlling shareholders and actual controlling persons, in written forms, about the recent developments of the company. It also orders ordered such companies to issue announcements about possible risks every two weeks to the public investors. (For more biz stories, please visit Industries)
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