A-share market continued its downward trend on Dec.7. The benchmark Shanghai Composite Index closed down 0.67 percent to 3,272.05 points, representing a four-day losing streak. The Shenzhen Component Index closed 1 percent lower to 10,801.25 points. The ChiNext Board Index closed down by 0.41 percent to 1,776.99 points, and it once reported gains during trading hours. The SSE 50, dubbed China's "Nifty Fifty" index, fell by 0.93 percent. The trading volume of A-share market recorded less than 350 billion yuan, a new low in five months.
Current-month contracts of CSI300 Index Futures (IF), CSI500 Index Futures (IC) and SSE50 Index Futures (IH) closed down 0.64 percent, 0.75 percent and 0.19 percent, respectively. The inventory of IF, IH and IC reduced by 1,433 lots, 721 lots and 1,623 lots. As to price difference, current-month contracts of IF, IH and IC see a discount of 22.46 points, 6.69 points and 49.87 points, suggesting that investors are still cautious.
On Dec. 7, northbound trading of the Shanghai-Hong Kong Stock Connect saw a net outflow of 882 million yuan. Rest intraday quota reported 13.85 billion yuan, 106.54 percent of total intraday quota. Southbound trading of the Shanghai-Hong Kong Stock Connect saw a net outflow of 678 million yuan. Rest intraday quota reported 13.625 billion yuan, 104.81 percent of total intraday quota. Balance of margin trading and short selling ended its four-day losing streak. As of Dec. 6, the balance of margin trading and short selling reported 1,013.068 billion yuan, 632 million yuan higher from 1,012.436 billion yuan recorded in previous trading day.
Incidents concerning pledge of stock right are frequently reported. Zhejiang Giuseppe Garment Co., Ltd. (002687.SZ) announced on Dec.7 evening that more pledge is required due to slump of stock price. Chen Liangren, one of the company’s actual controllers, pledges 600,000 shares he holds to Shenwan Hongyuan Securities and pledges 200,000 shares to China Fortune Securities for supplementing pledge. Since Chen has sound credit and repaying capability, the pledged shares see no risks of closing out now. Pledge risks are under control, and the pledge will not cause the change of actual controller.
Xin Jiang Ready Health Industry Co., Ltd. (600090.SH) announced on Dec. 7 evening that Hubei Ready Investment Holdings Ltd., controlling shareholder of the company, increased its shareholdings by 1.89 million shares on Dec. 6. Hubei Ready Investment Holdings together with its persons acting in concert propose to increase their shareholdings of the company in next six months. Total increase of shareholding will be no higher than 2,879 shares at no higher than 9 yuan per share, and the total increase ratio will be no higher than 2 percent of all shares of the company. Other listed companies announcing shareholding increase on the same day were Zhongmin Energy Co., Ltd. (600163.SH), YLZ Information Technology Co., Ltd. (300096.SZ), Aotecar New Energy Technology Co., Ltd. (002239.SZ), DHC Software Co., Ltd. (002065.SZ), Yantai Zhenghai Magnetic Material Co., Ltd. (300224.SZ) and AECC Aviation Power Co., Ltd. (600893.SH) and etc.
A drop was widely seen in domestic futures market on Dec.7. Industrial products experienced larger drop at ending hours, and black futures all nosedived. Coke dropped by the daily limit of 10 percent. Coking coal and iron ore once plummeted by the daily limit of 10 percent and closed down over 7 percent in the end. Hot rolled coils and rebar declined by over 3 percent. Bitumen once plummeted by the daily limit of 10 percent and finally ended down over 6 percent. PP and methanol dived by over 3 percent. Starting from the settlement on Dec. 11, 2017, the trading margin of SF futures 1801 contract will be adjusted to 20 percent, while that of SM futures 1801 contract will be adjusted to 10 percent, according to a notice issued by Zhengzhou Commodity Exchange.
Translated by Jennifer Lu
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