(Yicai Global) June 9 -- Below is a roundup of Yicai Global's top financial, business and markets news on China last week.
On June 8, a Shanghai Stock Exchange committee, charged with overseeing listings on the forthcoming Science and Technology Innovation Board, recommended that investor and share allotment accounts under management should hold a market value of at least CNY60 million (USD8.7 million). To avoid cut-throat competition, it also recommended allowing underwriters to charge strategic and institutional investors a commission of between 0.08 percent and 0.5 percent.
On June 7, People's Bank of China Governor Yi Gang said that interest rates in the country are at a relatively suitable level, adding that monetary policy would be adjusted appropriately in the event of any adversity as the central bank has ample leeway in adjusting interest rates and reserve requirement ratios.
On June 2, China Securities Regulatory Commission Chairman Yi Huiman said that China's capital market gained strong support from the country's economic fundamentals and historically low market valuations reflect great potential for the market's further development. A price-to-earnings ratio of 13 for companies in the Shanghai Composite Index, 12 for those in the CSI 300 Index and 10 for the SSE 50 Index were lower than those of global major indexes. The comparative figures for the US' Dow Jones was 19; France's CAC40 was 19; Japan's Nikkei 225 was 16; Germany's DAX30 was 17; and the UK's FTSE100 was 17.
Last week, the Shanghai Composite Index fell 2.45 percent, or 70.9 points, to 2,827.80. The Shenzhen Component Index tumbled by a steeper 3.79 percent, or 337.75 points, to 8,584.94. The ChiNext Index slumped 4.56 percent, or 67.6 points, at 1,416.06.
China Construction Bank and the Industrial and Commercial Bank of China recently opened wealth management units. More than 30 other banks plan to set up such businesses. Regulators have approved eight applications so far.
On June 3, the China Securities Regulatory Commission posted on its website a warning against inducements to buy shares of companies believed to be destined for the new Science and Technology Innovation Board.
On June 6, the National Development and Reform Commission, the Ministry of Ecology and Environment AND the Ministry of Commerce issued a notice stating that local governments are not authorized to restrict the purchase and use of new energy vehicles and should lift restrictions that they have put in place.
On June 6, China Mobile, China Telecom and China Unicom received commercial licenses to run fifth-generation wireless networks from the Ministry of Industry and Information Technology.
Editor: Ben Armour