China Stock Watch 30/12/13

Today was yet another distinctly unimpressive day for the major Chinese stocks, for several reasons.

  1. Eleven of the major stocks fell and only six shows any gains. The Shanghai index is trading at levels seen in the year 2000 – there have been no gains in thirteen years.
  2. Several Chinese banks are trading below their asset worth. This is a massive vote of no confidence in the management of the banks, and suggests the market believes there are substantial bad debts yet to come to light
  3. Several SOEs, it has been been noted, have lost substantial market cap over the year.
  4. Several brokerages got their fingers rapped by the Shanghai Stock Exchange for trading late. This does not inspire confidence.

On the day, then, the best performer was SAIC Motor, putting on 0.79% to RMB13.98. None of the other five to gain on the day put on over half a percent. The biggest decline was by Bank of Communications, down 2.31% to RMB3.8 a share, with Bank of China next, losing 1.5% to RMB2.62. The Shanghai Composite Index closed at 2,097.53, falling 3.72 points, or 0.18%.

Some have spoken of the opportunities Chinese stocks present, with their low P/E ratios and the high GDP growth. The trouble is, the opacity of Chinese governance (in the broadest sense) makes you unsure where the bodies are. No-one can be sure what bad debts the Chinese banks are concealing. No-one is sure what infrastructure problems the energy companies may be facing. Some day companies will realise that transparency is good for the bottom-line, but that seems some way off yet.

Name Price Change Mkt cap 52wk high 52wk low EPS P/E
Sinopec 4.43 -0.05 (-1.12%) 516,384M 7.03 4.05 CN¥0.62 7.2
PetroChina 7.71 -0.01 (-0.13%) 1.41B 9.5 7.08 CN¥0.68 11.41
ICBC 3.57 -0.01 (-0.28%) 1.25B 4.53 3.4 CN¥0.74 4.85
China Construction Bank 4.09 -0.04 (-0.97%) 1.02B 5.19 3.8 CN¥0.85 4.84
Agricultural Bank 2.46 0.00 (0.00%) 798,994M 3.28 2.38 CN¥0.50 4.9
Bank of China 2.62 -0.04 (-1.50%) 731,369M 3.26 2.48 CN¥0.53 4.93
China Mobile 80.35* -0.65 (-0.80%) 1.62B 91.8 74.9 HK$8.17 9.83
Noble Group 1.07 +0.01 (0.47%) 7,058M 1.27 0.785 SGD0.04 29.36
China State Construction 3.12 -0.02 (-0.64%) 93,600M 4.18 2.9 CN¥0.62 5.07
CNOOC 14.32* 0.00 (0.00%) 639,352M 17.38 12.04 HK$1.89 7.59
China Railway Construction 4.62 -0.01 (-0.22%) 56,999M 6.49 3.95 CN¥0.84 5.49
China Railway Group 2.65 +0.01 (0.38%) 56,445M 3.41 2.3 CN¥0.44 6.04
SAIC Motor 13.98 +0.11 (0.79%) 154,137M 19 11.83 CN¥2.05 6.81
China Life Insurance 15.02 -0.17 (-1.12%) 424,536M 22.7 12.88 CN¥0.97 15.54
Dongfeng Motor 12.16* +0.04 (0.33%) 104,772M 13.28 9.48 HK$1.37 8.86
China Shenhua 15.74 +0.04 (0.25%) 313,063M 25.7 15.36 CN¥2.25 6.99
Ping An Insurance 40.8 -0.04 (-0.10%) 322,979M 53.27 31.69 CN¥3.45 11.83
China Telecom 3.91* +0.01 (0.26%) 316,446M 4.46 3.48 HK$0.26 15.18
China Communications Construction 4.03 0.00 (0.00%) 65,185M 5.79 3.8 CN¥0.81 4.98
Bank of Communications 3.8 -0.09 (-2.31%) 282,198M 5.68 3.65 CN¥0.84 4.51
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