New ETF Book by Larry Connors - Click here to read more
The three listed state-owned banks are Industrial and Commercial Bank of China (ICBC, SHSE: 601398, and SEHK: 1398), China Construction Bank (CCB, SEHK: 0939 and SHSE: 601939) and Bank of China (BOC, SHSE: 601988 and SEHK: 3988). China SAFE acquired two million shares of the three listed banks each in September this year and said that it would buy more shares of them in the future.
The three share acquisitions, which cost China SAFE a total of CNY 25 million, were proved to have played a significant role in boosting the domestic stock market, as bank stocks on the mainland bourses rose in succession after the deals. However, the situation did not last long. The share acquisitions show the Chinese government's effort to stabilize the domestic capital market, as China SAFE is a government-backed investment firm, said industry experts.
However, China SAFE's investments in the three listed banks seemed to be inefficient, as bank stocks began dropping later. Notably, compared to up to CNY 100 billion bonus China SAFE gained from the three banks in the past few years, the CNY 25 million was only a drop of the sea. Therefore, more such deals are expected to be launched by the investment firm in the near future.
Statistics show that China SAFE gained over CNY 40 billion bonus from China Construction Bank during the period from 2005 to the end of June 2008. Among the total, about CNY 28.66 billion was obtained by China SAFE and its wholly-owned subsidiary China Jianyin Investment Ltd. in cash during the fiscal years 2005 and 2006. The bonus it gained from Industrial and Commercial Bank of China and Bank of China in recent years stood at around CNY 27 billion and CNY 24.91 billion, respectively.
Some industry observers thought that the acquisitions were moves China SAFE took to protect the share prices of the three listed banks. However, others do not think so, as the share prices of the three banks did not rise obviously. In their opinion, China SAFE acted as a stabilization fund rather then an investment firm at that time.
(USD 1 = CNY 6.83)
From www.cnstock.com, Page 1, Wednesday, November 19, 2008 info@SinoCast.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
