byd
Recharged: The surge in new A-share accounts might be good news for hybrid vehicle maker BYD's Shenzhen-listed A-shares.
Photo: Andrew Vanburen

Main source: Story in Securities Daily

Last week, new A-share accounts surged by over 10%, bringing a significant volume of new funds into the market.

Is this the beginning of the end of the bear market?

The new trading accounts last week helped lead to the infusion of 14.1 billion yuan into the bourses – just what the doctor ordered for China’s long struggling A-share markets.

Last week’s new trading account numbers were the third straight week of increases and the five-day total set a three-month high.

It’s all likely to be more kindling for the prairie fire that is starting to billow more than just a visible amount of smoke in the markets.

After a miserable first 11 months, the month of December has a decidedly different feel to it as far as China’s capital markets are concerned, with the benchmark Shanghai Composite Index adding around 14% since Dec. 1 alone.

During the Dec. 17-21 trading week, a total of nearly 120,000 new trading accounts were opened, up just over 10% from a year earlier.

Of the newly added numbers, 118,000 accounts were dedicated A-share trading accounts with the remainder earmarked for the far less popular B-shares.

An apparently growing commitment in the US to avoid the so-called “fiscal cliff,” less bad news coming out of Europe and expectations of fair to average full-year earnings results for China-listed enterprises are all working together to boost confidence among the PRC’s A-share investors.

The “December thaw” in China’s capital markets is indication of a gradual return to more bullish sentiment going forward and the newly opened sharetrading accounts are simply more evidence of a possible near-term return of the bulls to Shanghai and Shenzhen.

See also:

CHINA MARKET: Why 2013 Will Be Better

‘Chinese New Year Effect’ Arriving Early?

CITIC Says 'Blue Chips Key To China Shares In 2013'

CHINA/HK Property: What Do Big Research Houses Say?


Share Prices

Counter NameLastChange
AEM Holdings4.1400.020
Avi-Tech Electronics0.290-
Broadway Ind0.136-0.002
China Sunsine0.4550.015
DISA0.003-
Food Empire0.505-0.010
Fortress Minerals0.340-
Geo Energy Res0.385-0.005
Golden Energy0.8400.005
GSS Energy0.045-
InnoTek0.410-0.020
ISDN Holdings0.440-0.005
ISOTeam0.100-
IX Biopharma0.136-
Jiutian Chemical0.0790.001
KSH Holdings0.330-0.005
Leader Env0.0620.007
Medtecs Intl0.116-0.001
Meta Health0.031-
Moya Asia0.089-
Nordic Group0.480-
Oxley Holdings0.159-
REX International0.255-0.005
Riverstone0.595-
Sinostar PEC0.180-
Southern Alliance Mining0.600-
Straco Corp.0.400-
Sunpower Group0.260-
The Trendlines0.085-
Totm Technologies0.124-
UG Healthcare0.1770.001
Uni-Asia Group0.8650.005
Wilmar Intl3.730-0.030
Yangzijiang Shipbldg1.1800.080

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 863 guests and no members online