After the last few day’s euphoria has come a recognition that the reforms of the Third Plenum will take time to be worked out and implemented. Even if they are successful, many are likely to cause short-term pain, which is why they were delayed for so long. (One also had the impression of President Hu desperately wanting to keep things as they were before passing the buck onto Xi Jinping). Hukou reform, for example, is often unpopular with existing urban residents, who foresee and do not want further pressures on access to schools and healthcare from migrants. Banking reform will see less access to cheap credit for provincial leaders and their favoured companies. Nonetheless, the direction is the right one, and the reforms will benefit the economy.
The market took profits from the gains of the previous days, with eleven stocks falling, and none of them by over 1%. The banking sector was hardest hit, with ICBC, China Construction Bank, Agricultural Bank, Bank of China, and Bank of Communications all falling. China Life Insurance was the leader of the seven rising stocks, up 1.42%.
The Shanghai Composite Index finished down 4.09 points, or 0.19%.
Note – I have altered the list of the top twenty stocks. See the note at the end here for more details.
||52wk high||52wk low||EPS||P/E|
|China Construction Bank||4.34||-0.04 (-0.91%)||1.09B||5.19||3.9||CN¥0.85||5.13|
|Agricultural Bank||2.57||-0.02 (-0.77%)||834,720.86M||3.28||2.38||CN¥0.50||5.12|
|Bank of China||2.82||-0.01 (-0.35%)||787,198.70M||3.26||2.48||CN¥0.53||5.31|
|China Mobile||82.50*||-0.50 (-0.60%)||1.66B||91.80||74.9||HK$8.14||10.13|
|Noble Group||1.07||-0.01 (-0.93%)||7,057.84M||1.27||0.785||SGD0.04||29.86|
|China State Construction||3.31||-0.02 (-0.60%)||99,300.00M||4.18||2.9||CN¥0.62||5.37|
|China Railway Construction||5.17||+0.01 (0.19%)||63,785.09M||6.49||3.95||CN¥0.84||6.14|
|China Railway Group||2.91||0.00 (0.00%)||61,982.71M||3.38||2.3||CN¥0.44||6.64|
|SAIC Motor||15.37||+0.04 (0.26%)||169,462.96M||19.00||11.83||CN¥2.05||7.49|
|China Life Insurance||15.68||+0.22 (1.42%)||443,190.58M||22.70||12.88||CN¥0.97||16.22|
|Dongfeng Motor||12.40*||-0.10 (-0.80%)||106,839.88M||13.26||9.48||HK$1.37||9.07|
|China Shenhua||16.54||-0.04 (-0.24%)||328,974.34M||25.70||15.51||CN¥2.25||7.35|
|Ping An Insurance||40.76||-0.38 (-0.92%)||322,661.94M||53.27||31.69||CN¥3.45||11.82|
|China Telecom||4.13*||+0.01 (0.24%)||334,250.69M||4.46||3.48||HK$0.26||16.09|
|China Communications Construction||4.23||0.00 (0.00%)||68,419.13M||5.79||3.8||CN¥0.81||5.23|
|Bank of Communications||4.14||-0.02 (-0.48%)||307,447.68M||5.68||3.68||CN¥0.84||4.91|