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Top stories of the day-China Stock Market-May 22BEIJING, May 21, 2013 (Xinhua via COMTEX) -- The top stories of China stock market on May 22: 1. Xiao Gang, Chairman of China Securities Regulatory Commission (CSRC), China's top securities regulator, said on Tuesday that the CSRC would further push forward reform and opening-up of the domestic capital market, and protect the legitimate rights and interests of small investors in the market. Xiao said the CSRC aimed to crack down on illegal behavior and prevent systemic risk from the domestic market to boost healthy development of the capital market in the country. The top regulator would also strengthen information disclosure on the stock market via high-tech supervision methods. China's capital market is still an emerging market and has great potentials of development in the future, Xiao said, adding the country should catch the opportunities to promote the reform and opening-up of the domestic market, stick to the direction of marketization, legalization, and internationalization, and further optimize allocation of resources for the domestic market. Comment: Xiao s remarks are expected to give a further pull to the recovering A-share market and enhance investors confidence. 2. Several ChiNext-listed companies have released risk warning statements by Tuesday evening after recent bull runs. These companies include Ob Telecom Electronics Co. Ltd (300270.SZ), Leshi Internet Information and Technology Corp. (300104.SZ), SJ Environ (300072.SZ), Spearhead Integrated Marketing Communication Group (300071.SZ) and Bluefocus Communication Group Co., Ltd. (300058.SZ). They said in their respective statement that the stock prices had seen abrupt hike recently while their business and ongoing capital operation are still involving uncertainties which are unlikely to bring positive effect on their earnings in the short term. Comment: The ChiNext-listed A shares are expected to be stricken by the news and may decline on profit-taking after recent sharp rise. 3. As of Monday, 913 of the 2,453 firms listed on China's Shanghai and Shenzhen stock exchanges had unveiled forecasts of their financial results for the half year of 2013. Among them, 111 companies expected their profits to rise year on year in H1. Meanwhile, 98 companies predicted their net profits to decline in the first half year, 50 expected to be in the red for the first time, and 48 expected to move to gains from losses during the period. Among the companies guiding profit rise, 39 predicted their H1 net profits would increase more than 50 percent year on year. BYD (002594.SZ; 01211.HK) projected the highest profit rise of 2,973 percent on year. It is followed by Guangdong Shirong Zhaoye (002016.SZ) and Shenzhen Rainbow (002256.SZ). Meanwhile, 87 companies predicted their H1 net profits would decline over 50 percent. In terms of industries, companies in the raw chemicals, chemical products, machinery and special equipment manufacturing industries expected to see gloomy performance in H1. (Edited by Li Xueqing, [email protected]) |