Stocks plunge 3.5% on rumors_财经新闻

Stocks plunge 3.5% on rumors

文章来源：文章作者：发布时间：2007-10-19 06:13 字体： [大中小]　进入论坛

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Oct.18 - Chinese stocks experienced turbulent swings today, as wide-spread speculation¹ on possible reforms making A and H shares convertible² triggered panic selling in the market. Investors³ were worried about diminishing price gaps between the mainland and Hong Kong stock markets, said analysts⁴.

The benchmark Shanghai Composite Index plunged⁵ 211 points or 3.5 percent to 5,825.28 points by the close, the largest single-day drop in a month. The Shenzhen Component⁶ Index closed at 18,681.35, down 606.95 points or 3.15 percent. Total turnover⁷ of the stocks in the two indices was 194.2 billion yuan, the lowest this month.

Vice⁸ chairman Tu Guangshao of the China Securities Regulatory Commission (CSRC) said yesterday that the securities regulator is currently considering making a company's A and H shares exchangeable. CSRC may announce the research results soon, Tu said.

It is widely believed that such a decision constitutes good news for the Hong Kong stock exchange but is discouraging for the mainland bourses.

Of the A shares listed in the two exchanges, as many as 1,047 fell down, while only 311 went up and 135 closed flat. Large traders China Unicom, China Shenhua Energy, the Industrial and Commercial Bank of China, and China Vanke all lost over 3 percent in share prices, dragging the index down sharply.

Industrial insiders said China's other ministries⁹ are also keeping a close eye on the market reaction to the news, especially the State Administration of Foreign Exchange (SAFE). If the proposal is passed, it will be an important move in further opening up the country's capital account.

If the two are convertible, the current price gaps, with A shares at surplus and H shares discounted, may become narrower, said analysts with Credit Suisse. Such a convergence will affect both markets dramatically.

In contrast with the sluggish¹⁰ performance of the A-share market today, Hong Kong's Hang Seng Index rocketed 700 points in the morning.

However, most analysts believed the markets have been "over-reacting". Merrill Lynch believed the price gaps are not going to vanish any time soon, as the government has no urgent need to rip them off. The A, H share convergence may stimulate¹¹ capital outflow and release pressure for renminbi appreciation¹². But the risks include the chances of domestic investors buying "over-valued" overseas equities¹³.

In addition, it is hard for SAFE, the foreign exchange regular, to make hasty decisions now as the H share values, which are also A shares in the domestic bourses, have in total exceeded US$620 billion, analysts with the global investment bank said.

Also, diminishing price gaps will weaken the position of Hong Kong as a global financial center as the trading volume of the Hong Kong stock market may decrease. Merrill Lynch analysts said there is no sign of the mainland authorities preparing for such an exchange platform and CSRC is actively¹⁴ preparing for the return of H shares to the mainland market. The convergence is not going to occur soon, they believed.

Latest developments that might have also affected¹⁵ today's stock market include the denial of the State-owned enterprises (SOEs) price listing plan and a high consumer price index (CPI) growth for the first nine months, indicating more inflationary pressure.

The State-owned Assets Supervision¹⁶ Administration Commission (SASAC) denied media reports that 30 central SOEs are planning overall listing on Chinese exchanges, said Jia Xiaoliang, vice director-general of SASAC enterprise reform division.

Jia confirmed that the list of 30 central SOEs in media reports is not in accord with what is expected. "The enterprises planning overall listing mentioned in the media are not those we have established," Jia said.

China's CPI grew 4.1 percent in the first nine months of this year, compared with the same period of 2006, said Chen Deming, vice chairman of the National Development and Reform Commission (NDRC) at a meeting of the 17th National Congress of the Communist Party of China on October 16.

The 4.1 percent January to September CPI growth rate is higher than the 3.9 percent for the first eight months, 3.5 percent for the first seven months, and 3.2 percent for the first six months this year. It is also much higher than the 3 percent macro-control target set by the government for the year. In August, CPI grew at a 128-month high of 6.5 percent after a 10-year record for monthly growth in July of 5.6 percent.

Regulators are likely to implement¹⁷ further tightening¹⁸ macro-control policies to address the inflation problem, curb¹⁹ excessive liquidity²⁰, and restrain commercial bank loans, said Bi Jingquan, another vice chairman of NDRC.

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收听单词发音

1 speculation
n.思索，沉思；猜测；投机
参考例句：
Her mind is occupied with speculation.她的头脑忙于思考。 There is widespread speculation that he is going to resign.人们普遍推测他要辞职。

2 convertible
adj.可改变的，可交换，同意义的；n.有活动摺篷的汽车
参考例句：
The convertible sofa means that the apartment can sleep four.有了这张折叠沙发，公寓里可以睡下4个人。 That new white convertible is totally awesome.那辆新的白色折篷汽车简直棒极了。

3 investors
n.投资者，出资者( investor的名词复数 )
参考例句：
a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子 a cash bonanza for investors 投资者的赚钱机会

4 analysts
分析家，化验员( analyst的名词复数 )
参考例句：
City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。 I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。

5 plunged
v.颠簸( plunge的过去式和过去分词 )；暴跌；骤降；突降
参考例句：
The train derailed and plunged into the river. 火车脱轨栽进了河里。 She lost her balance and plunged 100 feet to her death. 她没有站稳，从100英尺的高处跌下摔死了。

6 component
n.组成部分，成分，元件；adj.组成的，合成的
参考例句：
Each component is carefully checked before assembly.每个零件在装配前都经过仔细检查。 Blade and handle are the component parts of a knife.刀身和刀柄是一把刀的组成部分。

7 turnover
n.人员流动率，人事变动率；营业额，成交量
参考例句：
The store greatly reduced the prices to make a quick turnover.这家商店实行大减价以迅速周转资金。 Our turnover actually increased last year.去年我们的营业额竟然增加了。

8 vice
n.坏事；恶习；[pl.]台钳，老虎钳；adj.副的
参考例句：
He guarded himself against vice.他避免染上坏习惯。 They are sunk in the depth of vice.他们堕入了罪恶的深渊。

9 ministries
（政府的）部( ministry的名词复数 )；神职；牧师职位；神职任期
参考例句：
Local authorities must refer everything to the central ministries. 地方管理机构应请示中央主管部门。 The number of Ministries has been pared down by a third. 部委的数量已经减少了1/3。

10 sluggish
adj.懒惰的，迟钝的，无精打采的
参考例句：
This humid heat makes you feel rather sluggish.这种湿热的天气使人感到懒洋洋的。 Circulation is much more sluggish in the feet than in the hands.脚部的循环比手部的循环缓慢得多。

11 stimulate
vt.刺激，使兴奋；激励，使…振奋
参考例句：
Your encouragement will stimulate me to further efforts.你的鼓励会激发我进一步努力。 Success will stimulate the people for fresh efforts.成功能鼓舞人们去作新的努力。

12 appreciation
n.评价；欣赏；感谢；领会，理解；价格上涨
参考例句：
I would like to express my appreciation and thanks to you all.我想对你们所有人表达我的感激和谢意。 I'll be sending them a donation in appreciation of their help.我将送给他们一笔捐款以感谢他们的帮助。

13 equities
普通股，股票
参考例句：
These are invested mainly in the OECD bonds and equities. 这些资产主要投资于经济合作及发展组织的债券与股票市场。 They are also advantage of the global rebound in equities. 它们还在利用全球股市反弹的机会。

14 actively
adv.积极地，勤奋地
参考例句：
During this period all the students were actively participating.在这节课中所有的学生都积极参加。 We are actively intervening to settle a quarrel.我们正在积极调解争执。

15 affected
adj.不自然的，假装的
参考例句：
She showed an affected interest in our subject.她假装对我们的课题感到兴趣。 His manners are affected.他的态度不自然。

16 supervision
n.监督，管理
参考例句：
The work was done under my supervision.这项工作是在我的监督之下完成的。 The old man's will was executed under the personal supervision of the lawyer.老人的遗嘱是在律师的亲自监督下执行的。

17 implement
n.(pl.)工具，器具；vt.实行，实施，执行
参考例句：
Don't undertake a project unless you can implement it.不要承担一项计划，除非你能完成这项计划。 The best implement for digging a garden is a spade.在花园里挖土的最好工具是铁锹。

18 tightening
上紧，固定，紧密
参考例句：
Make sure the washer is firmly seated before tightening the pipe. 旋紧水管之前，检查一下洗衣机是否已牢牢地固定在底座上了。 It needs tightening up a little. 它还需要再收紧些。

19 curb
n.场外证券市场，场外交易；vt.制止，抑制
参考例句：
I could not curb my anger.我按捺不住我的愤怒。 You must curb your daughter when you are in church.你在教堂时必须管住你的女儿。

20 liquidity
n.流动性，偿债能力，流动资产
参考例句：
The bank has progressively increased its liquidity.银行逐渐地增加其流动资产。 The demand for and the supply of credit is closely linked to changes in liquidity.信用的供求和流动资金的变化有密切关系。

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