|
The Chinese government is expected to order its two stock markets to suspend operation for almost three weeks starting in May to avoid the spread of the severe acute respiratory syndrome, or SARS.
The market was rife with speculation the exchanges in Shanghai and Shenzhen will suspend trading from Thursday through May 18, extending an original plan of a five-day break for the May Day holiday.
The China Securities Regulatory Commission is in talks with officials from the two exchanges who want trading halted for 18 days, Wang Qingsong, listing manager of the Shanghai exchange, was quoted by Bloomberg News as saying.
Waiting for the CSRC's final decision, investors snapped up shares on anticipation the epidemic situation would be well under control after the 18-day break, analysts said.
"Many investors were upbeat about the prospect of the markets after the break, betting the government will finally win in its fight against SARS," said Wu Kan, a Shang-hai Securities analyst.
The Shanghai Composite Index rebounded 3.4 percent to 1537.69, ending six straight sessions of weakness amid worries over the negative impacts SARS may bring to the economy.
Daily transactions were valued at 19.28 billion yuan (US$2.32 billion), nearly double that of the previous session.
Traders pursued financial and auto names which have staged a deep correction in earlier sessions.
Citic Securities, the only listed brokerage in China, soared by 10 percent to 8.31 yuan. Shanghai Pudong Development Bank Co Ltd and Shanghai Automotive Co also hit the 10 percent cap, closing at 12.51 yuan and 11.53 yuan, respectively.
Wu warned investors to remain cautious about their investments.
"I suggest to investors to trim their positions because such a long break would bring a lot uncertainties on the shares."
The Shanghai A-share in-dex moved up 3.43 percent to 1609.21 while B shares gained 1.52 percent to 119.85.
China's three futures exchanges in Shanghai, Zhengzhou and Dalian may also face a long halt following a pending decision by CSRC.
"We are waiting for the final decision from the CSRC," said Gu Yixin, assistant to the administration director with Shanghai Futures Exchange.
(Shanghai Daily April 29, 2003)
|
