Total value of the Chinese stocks hit 17.43 trillion yuan (US$2.27 trillion) yesterday and has likely surpassed the total in household deposits, as money continues to flow out of banks and into the stock market.
In April, total householdrenminbideposits dropped to 17.37 trillion, a decrease of 167.4 billion yuan (US$21.7 billion) compared with March. Household deposits may drop further in May as investors are rushing to withdraw money from savings accounts and pump them into the stock market, the Shanghai Securities News reported..
According to statistics, the total stock value of the Shanghai stock market reaches 13.49 trillion yuan and its current market value stands at 3.8 trillion yuan, with an average price-earning ratio of 42.53. And the total stock value of the Shenzhen stock market is 3.94 trillion yuan with a current market value of 1.95 trillion yuan, and an average price-earning ratio of 50.15.
China's renminbi deposits increased 444 billion yuan at the end of April, down by 13.3 billion yuanyear-on-year. In the same month, renminbi savings balance with Chinese banking institutions was 35.9 trillion yuan, up 15.7 percent from April last year. During the first four months of 2007, renminbi deposits increased 2.3 trillion yuan, a decrease of 73.7 billion yuan in growthyear on year. Deposits with non-banking institutions increased by 280.7 billion yuan, up 88.7 billion yuan year-on-year.
The total value of the two Chinese stock markets surpassed 15 trillion yuan for the first time on April 23, and increased by one trillion yuan in the following five trading days to 16.09 trillion yuan on April 30.