China's “A” group stock market value declines
30 Jun 2011
In the first half of the year China's A group market share value shrank by a cumulativel 903.2 billion yuan ($139.6 billion), reported China Securities Journal on Wednesday.
A sharp fall was seen in the Small- and Medium- Enterprises (SME) and Growth Enterprise Market (GEM) boards on the Shenzhen Stock Exchange accounting for 80.68 per cent of the total losses, nosediving by 728.6 billion yuan, the data revealed.
However, contrary to expectations, the main board stocks became the bull force in the A-share market with nine stocks performing well compared to the bear performance of the SME and GEM boards which pull down the market, according to the newspaper.
The data also revealed the 12 months price-to-earnings ratio (TTM P/E) of the Shanghai Shenzhen CSI 300 Index decreased to 13.56, compared to 14.52 at the end of last year when the trading closed on June 28.
The ratio for the SME board fell from 45.75 last year to the current 36.48, while for the GEM board the ratio receded to 43.88 from 65.92.
The sharp fall seen in the Small- and Medium- Enterprises (SME) and Growth Enterprise Market is a cause of concern for the Chinese government, which is hoping for growth from the two segments, particularly SME enterprises, which account for around 80 per cent of the nation's jobs.
.webp)
