China Stock Watch 26/12/13

Readers may know that in Bleak House, Charles Dickens symbolised the opacity of law with the London fog (more likely smog) then endemic. The famous second paragraph goes:

Fog everywhere. Fog up the river, where it flows among green aits and meadows; fog down the river, where it rolls defiled among the tiers of shipping and the waterside pollutions of a great (and dirty) city. Fog on the Essex marshes, fog on the Kentish heights. Fog creeping into the cabooses of collier-brigs; fog lying out on the yards, and hovering in the rigging of great ships; fog drooping on the gunwales of barges and small boats. Fog in the eyes and throats of ancient Greenwich pensioners, wheezing by the firesides of their wards; fog in the stem and bowl of the afternoon pipe of the wrathful skipper, down in his close cabin; fog cruelly pinching the toes and fingers of his shivering little ’prentice boy on deck. Chance people on the bridges peeping over the parapets into a nether sky of fog, with fog all round them, as if they were up in a balloon, and hanging in the misty clouds.

The correlation with Chinese law, governance and business is obvious. A system which cannot enforce air quality fit for human habitation is not one in which you have confidence. And so the stock market declines.

Today a full fifteen stocks declined. SAIC Motor (-3.11%), China Railway Construction (-2.77%) and China State Construction (-2.52%) had the worst of it. China Telecom had the largest rise, up 2.09%. The Shanghai Composite Index declined 33.25 points (-1.58%) to 2,073.10. Alarm bells will be ringing as it nears the 2000 barrier (putting it back to 2006 levels). We will likely see share-buyback operations to shore up prices. But even this shows the not-so-invisible hand of the state.

Name Price Change Mkt cap 52wk high 52wk low EPS P/E
Sinopec 4.5 -0.08 (-1.75%) 524,544M 7.03 4.05 CN¥0.62 7.32
PetroChina 7.71 -0.03 (-0.39%) 1.41B 9.5 7.08 CN¥0.68 11.41
ICBC 3.55 -0.04 (-1.11%) 1.24B 4.53 3.4 CN¥0.74 4.83
China Construction Bank 4.08 -0.06 (-1.45%) 1.02B 5.19 3.8 CN¥0.85 4.82
Agricultural Bank 2.43 -0.04 (-1.62%) 789,250M 3.28 2.38 CN¥0.50 4.84
Bank of China 2.63 -0.03 (-1.13%) 734,161M 3.26 2.48 CN¥0.53 4.95
China Mobile 80.95* +0.40 (0.50%) 1.63B 91.8 74.9 HK$8.17 9.91
Noble Group 1.04 0.00 (0.48%) 6,925M 1.27 0.785 SGD0.04 28.84
China State Construction 3.1 -0.08 (-2.52%) 93,000M 4.18 2.9 CN¥0.62 5.03
CNOOC 14.36* +0.12 (0.84%) 641,137M 17.38 12.04 HK$1.89 7.61
China Railway Construction 4.57 -0.13 (-2.77%) 56,383M 6.49 3.95 CN¥0.84 5.43
China Railway Group 2.61 -0.06 (-2.25%) 55,593M 3.41 2.3 CN¥0.44 5.95
SAIC Motor 13.38 -0.43 (-3.11%) 147,522M 19 11.83 CN¥2.05 6.52
China Life Insurance 14.8 -0.15 (-1.00%) 418,318M 22.7 12.88 CN¥0.97 15.31
Dongfeng Motor 12.66* +0.20 (1.61%) 109,080M 13.28 9.48 HK$1.37 9.22
China Shenhua 15.57 -0.26 (-1.64%) 309,681M 25.7 15.41 CN¥2.25 6.92
Ping An Insurance 39.58 -0.52 (-1.30%) 313,321M 53.27 31.69 CN¥3.45 11.48
China Telecom 3.90* +0.08 (2.09%) 315,636M 4.46 3.48 HK$0.26 15.14
China Communications Construction 3.98 -0.08 (-1.97%) 64,375M 5.79 3.8 CN¥0.81 4.92
Bank of Communications 3.85 -0.06 (-1.53%) 285,911M 5.68 3.65 CN¥0.84 4.57
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