A Banner Year for China’s Stock Markets – Frederik Balfour

From Business Week:

Programs to eliminate non-tradable shares are part of what brought retail investors back to the mainland bourses. The Shanghai index is up 122%

About the time that executives at HSBC Holdings in Britain were opening their Christmas stockings on Dec. 25, markets in Shanghai were closing”with shares in ICBC, or Industrial & Commercial Bank of China, ending the day up 9.9%. That was enough to drive up ICBC’s market capitalization to $214.2 billion, in the process unseating HSBC to become the world’s third largest lender by market value behind Citigroup and Bank of America. On Dec. 26 its shares climbed another 5.8%.

That performance has helped drive the Shanghai Composite to a record closing high. The index is up a whopping 122% in dollar terms this year, while the smaller Shenzhen exchange is up 101%. The combined market capitalizations of Shanghai and the smaller Shenzhen Exchange now total $815 billion.[Full Text]

December 27, 2006 4:02 PM
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Categories: Economy