Stocks News
- Researcher urges more domestic listings
Date: 3-Sep-2007 Sources: (Shenzhen Daily)
The government should let more quality firms sell shares domestically to increase the stock supply in the mainland's red-hot market and make use of excess cash in its financial system, a top researcher said Saturday.
The mainland's stock market has set a series of record highs this year, partly driven by massive liquidity created by the country's ballooning trade surplus.
The benchmark Shanghai Composite Index has gained more than 90 percent so far this year on top of a 130 percent rally in 2006.
'All government agencies should actively encourage good quality firms to list on the domestic market in order to promote their management and let more investors enjoy the fruits of China's rapid economic growth,'Qi Bin, head of research at the China Securities Regulatory Commission, said.
More share floats would also increase the supply of stocks and take advantage of excess liquidity, he added.
The relentless stock gains, fueled by a massive influx of funds from legions of small-time investors, have concerned authorities in Beijing.
A growing number of overseas analysts have said that Chinese stock valuations are far above international levels and that the country's stock market faces a potential sharp correction.
By speeding up the listings of quality firms, the regulator also hopes to bring more balance to market demand and supply.
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