SHANGHAI stocks gained today on speculation the securities regulator will put off new initial public offerings to boost market confidence.
The key Shanghai Composite Index rose 0.53 percent to 2,358.98 points. The daily turnover was 124.9 billion yuan (US$20.1 billion).
China's securities regulator won't approve new IPOs until June as it tightened supervision on the process for public listing, today's Economic Information Daily reported, citing an unnamed source close to the regulator. The news eased concerns that new IPOs will drain liquidity and hurt investor performance.
Earlier this month the regulator required companies that applied for IPOs on the domestic bourses to authenticate their financial status and submit a report before March 31. The regulator will send investigation teams to check randomly 20 to 50 IPO applications to crack down on false financial disclosures and profit manipulations.
Cheng Feng, analyst with Huatai Securities, said the measures indicated the regulator's determination to protect the market. It is unlikely to launch IPOs until investor confidence has recovered.
Brokerages led the market up. CITIC Securities, the biggest listed brokerage, rose 4.3 percent to 14.96 yuan. Haitong Securities Co jumped 7.3 percent to 11.81 yuan. China Merchants Securities Co surged by the daily limit of 10 percent to 12.30 yuan.
Most lenders also advanced. China Merchants Bank added 3 percent 14.60 yuan. China Minsheng Banking Corp increased 2.6 percent to 10.26 yuan. Shanghai Pudong Development Bank edged up 1.1 percent to 11.30 yuan.