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Chinese shares down 3.34% in morning session

By Li Zengxin (chinadaily.com.cn)
Updated: 2007-06-04 11:35
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Opening lower, Chinese stocks failed to maintain the 4,000-point foothold and plunged another 3.34% to 3,867.28 by the closing time of the morning session.

The Shanghai Composite Index opened from 3,981.82 and climbed a little to 3,987.27. But soon it slipped and hit the lowest 3,697.12 with little resistance. Then it turned back and stumbled up. The weak support did not reverse a downward trend.

Although the two exchanges did not implement the rule of suspending trading on shares with "abnormal price fluctuation" last week, at some 310 stocks in total, they couldn't quite stop investors from "panic" selling this morning. By the closing time, the benchmark index has diminished 467 points in merely less than four trading days from the highest 4,334.92 on Tuesday's closing.

Of the A shares listed on the two exchanges, only 134 saw their prices rising this morning, leaving 1,294 dropping and 145 unchanged. Heavyweight blue chips also failed to have the slightest growth to make the index look better.

Bank shares, the Industrial and Commercial Bank of China, Bank of China and China Minsheng Banking Corp, ranking on top of the trading volume and transaction value on the Shanghai bourse, all slid to press the index down.

Affected by the wide range swings of the stock market recently, A-share account opening shrank dramatically to 269,734 on May 31. New B-share accounts also decreased.

On the other hand, the risk-resistant features of fund products attracted more investors in the volatile market, as the daily new accounts rocked to 449,421 last Thursday, right after the hike in stamp tax on stock trading.

New stock account opening in May:

Date

A share

B share

Fund

Total

2007-05-08

368,489

16,632

36,710

421,831

2007-05-09

325,969

27,764

198,826

552,559

2007-05-10

333,963

35,133

194,143

563,239

2007-05-11

335,278

38,815

362,940

737,033

2007-05-14

346,892

44,777

108,179

499,848

2007-05-15

299,762

56,570

47,037

403,369

2007-05-16

240,023

44,668

42,328

327,019

2007-05-17

232,257

33,693

27,836

293,786

2007-05-18

252,364

35,066

23,009

310,439

2007-05-21

286,995

27,952

37,185

352,132

2007-05-22

286,392

20,627

34,334

341,353

2007-05-23

297,757

14,860

37,245

349,862

2007-05-24

316,482

11,005

35,232

362,719

2007-05-25

311,706

9,923

51,593

373,222

2007-05-28

385,302

9,347

60,462

455,111

2007-05-29

367,466

8,154

48,088

423,708

2007-05-30

343,715

5,895

76,552

426,162

2007-05-31

269,734

4,308

449,421

723,463

Source: China Securities Depository and Clearing Co Ltd

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