China Stocks: China Minsheng, SAIC Motor, Jilin Pharmaceutical
Shares of the following companies had unusual moves in China trading. Stock symbols are in parentheses and prices are as of 3 p.m. close.
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, dropped 5.77 points, or 0.2 percent, to 2,479.05. The CSI 300 Index (SHSZ300) fell 0.2 percent to 2,729.05.
Banks: China Minsheng Banking Corp. (600016 CH) lost 1.7 percent to 5.77 yuan. Bank of Beijing Co. (601169 CH) declined 1.3 percent to 9.60 yuan.
Smaller banks set aside more cash as reserves today following the broadening of the reserve-requirement ratio base to include margin deposits, also supporting the rate. The move may lock up a total of 83 billion yuan ($13 billion) of capital, according to Qilu Bank Co. in Jinan.
Jilin Pharmaceutical Co. (000545 CH) fell 5 percent, the daily limit for so-called special-treatment stocks, to 10.70 yuan, after the stock resumed trading following a two-month suspension. The company said it wasn’t able to initiate a “major asset reorganization” within the required period of time and will give up efforts related to the reorganization for at least three months.
SAIC Motor Corp. (600104 CH), China’s biggest carmaker by market value, advanced 2.3 percent to 15.47 yuan. The carmaker will issue 1.78 billion shares to its parent for 29.12 billion yuan of assets, according to a statement to the Shanghai Stock Exchange. Investors should buy Chinese auto stocks because their valuations are at record lows and auto sales have likely bottomed out, according to Citic Securities Co., the nation’s biggest listed brokerage.
Shenzhen O-film Tech Co. (002456 CH) jumped by the 10 percent daily limit to 19.53 yuan. The company will expand investment in a unit making electronics parts to 1 billion yuan from 350 million yuan, according to a statement to the Shenzhen Stock Exchange yesterday.
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