China Stock Watch 13/11/13

China’s stocks delivered a resounding “Not impressed” to the results of the Third Plenum, with every single major stock falling. This should not be much of a surprise, despite the sentence that markets will have a “decisive role”. Chinese political statements are not the grandiose decisive pronouncements that we in the west are familiar with. This is through a difference in governing and relations to media. In the west, governments have to talk big to lay down their markers and influence the debate; they have to raise their banners high so that they can be heard and understood over the media babble. China, with its control of media and the (official) political discourse, has no such problems here. It can talk small, even opaquely, but move on its own terms. Those expecting a “Big Bang” announcement of deregulation and dismembering of the SEOs would do well to remember the Russian experience of the early 1990s (and that these disastrous policies were advocated by the World Bank and other “experts”), and the Chinese leadership is right to be wary of this. But small changes in official language (such as that regarding the market) can have enormous consequences. The market may signal short-term disappointment at the lack of dazzling policy announcements, but the Third Plenum may yet herald significant moves.

On the day, Bank of Communications (down 3.12%), SAIC Motor (down 2.98%) and Ping An Insurance (down 2.94%) were the biggest fallers. Jardine Matheson was relatively unscathed, down 0.25%. The Shanghai Composite Index was down 38.83, or 1.83%.

Name Price Change Mkt cap 52wk high 52wk low EPS P/E
Sinopec 4.68 -0.08 (-1.68%) 545,525.49M 6.39 4.05 CN¥0.62 7.61
ICBC 3.79 -0.04 (-1.04%) 1.33B 4.53 3.4 CN¥0.74 5.15
China Construction Bank 4.27 -0.07 (-1.61%) 1.07B 5.19 3.82 CN¥0.85 5.05
Agricultural Bank 2.52 -0.03 (-1.18%) 818,481.17M 3.28 2.38 CN¥0.50 5.02
Bank of China 2.78 -0.03 (-1.07%) 776,032.77M 3.26 2.48 CN¥0.53 5.24
China Mobile 79.60* -0.85 (-1.06%) 1.60B 91.80 74.9 HK$8.14 9.77
Noble Group 1.05 -0.03 (-2.78%) 6,970.48M 1.27 0.785 SGD0.05 23.09
China State Construction 3.2 -0.06 (-1.84%) 96,000.00M 4.18 2.9 CN¥0.62 5.2
CNOOC 14.84* -0.42 (-2.75%) 662,568.25M 17.38 12.04 HK$1.88 7.89
China Railway Construction 4.99 -0.09 (-1.77%) 61,564.33M 6.49 3.95 CN¥0.81 6.18
China Railway Group 2.81 -0.04 (-1.40%) 59,852.72M 3.38 2.3 CN¥0.44 6.41
SAIC Motor 14.34 -0.44 (-2.98%) 158,106.63M 19.00 11.83 CN¥2.05 6.99
China Life Insurance 13.74 -0.33 (-2.35%) 388,357.04M 22.70 12.88 CN¥0.97 14.21
Dongfeng Motor 11.30* -0.32 (-2.75%) 97,362.16M 13.26 9.45 HK$1.37 8.26
Ping An Insurance 36.27 -1.10 (-2.94%) 287,118.48M 53.27 31.69 CN¥3.45 10.52
China Telecom 3.86* -0.10 (-2.53%) 312,398.93M 4.46 3.48 HK$0.26 15.04
China Communications Construction 4.09 -0.08 (-1.92%) 66,154.67M 5.79 3.8 CN¥0.81 5.05
Bank of Communications 4.03 -0.13 (-3.12%) 299,278.80M 5.68 3.68 CN¥0.84 4.78
Jardine Matheson 52.09 -0.13 (-0.25%) 15,939.54M 70.00 51.02 4.59 11.36
Aluminum Corp. of China 3.77 -0.11 (-2.84%) 50,987.32M 5.38 3.01 -CN¥0.42
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