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ChiNext loses 30b yuan in one week

(chinadaily.com.cn)
Updated: 2010-04-19 17:39

The total market value of 65 companies listed in the ChiNext, China's start-up board for small and medium-sized enterprises, lost more than 30 billion yuan ($4.39 billion) last week, the Beijing Business reported on Monday.

Statistics showed that the total market value of the companies declined to 301 billion yuan when the market closed last week, from 331 billion yuan on April 9, a decrease of 9 percent, or 30 billion yuan, forming the largest weekly loss since December 2009.

The downturn started on April 11, when stocks on the board closed lower, with an average declining rate of 7.6 percent, and 11 stocks fell to the daily limit of 10 percent. On April 13, 66 stocks closed lower over the previous day, with 55 stocks dropping more than 4 percent.

Some analysts attributed last week's decline to the newly launched stock index futures, which drew large sums of funds from the ChiNext.

However, the dump may be just the beginning. The lock-period for eight companies' shares will expire on Tuesday, adding 31 million tradable shares on the market. Analysts said it would make the market even worse, the report said.