Reports said fund inflows were concentrated in the bio pharmaceutical, banking and public utitlies sectors, while outflows hit the non-ferrous metal, brokerage and trust and equipment production sectors.
According to Chnia's Ministry of Human Resources and Social Security, 12 provinces have either filed or published salary guides, a majority of which sharply cut the rate of pay increases. Some experts attributed the drop in growth rates to a decline in profits for enterprises amid an overall economic slowdown.
CICC said in a report that the Chinese economy will go through a complicated bottoming process in the second half of 2012, though it would be near a bottom with policy support. The bank anticipated GDP growth of 7.8 percent in 2012 and 8.3 percent in 2013, while inflation in 2012 is estimated to hit 2.8 percent. CICC also believes the stock market will rebound in July and August as policies are relaxed, in addition to improved liquidity. CICC said that the Shanghai bourse might climb as high as between 2,500 points and 2,600 points, while a 15 times forward P/E ratio for the overall market corresponds to a level of 2,540 points.
Zhang Yujun, general manager at Shanghai Stock Exchange, said that the exchange projects to achieve annual turnover of 100 trillion yuan as it looks to double its market scale to 30 trillion to 40 trillion yuan by the end of the 12th Five Year Plan period. During the five year period, the exchange hopes to become the second-largest exchange worldwide, while turnover could hit 70 trillion to 80 trillion yuan. At present, the Chinese stock market capitalization is 21.48 trillion yuan, ranking third globally.
According to Guodu Securities, open-end stock funds had average stock positions of 79.22 percent last week, down 1.07 percentage points from a week ago. It was reported by the brokerage firm that mutual funds actively cut stock holdings by 0.81 percentage points last week, reflecting their cautious attitude. Last week, 53.6 percent of mutual funds cut their stock holdings, including 45.8 percent that lowered stock holdings by less than three percent and 7.8 percent of funds that cut holdings by three to five percent.
Equity Movers
Cement makers were the worst-performing stocks today on concern that the Chinese economy will not bottom by the end of the second quarter; top losers were BBMG Corporation (601992, 6.99, -8.27%), Sichuan Shuangma Cement (000935, 7.39, -8.20%) and Tangshan Jidong Cement (000401, 14.17, -8.17%).
Coal-related companies took more heavy losses today, with Wintime Energy (600157, 8.78, -7.48%), Guizhou Panjiang Refined Coal (600395, 25.51, -6.45%) and Yang Quan Coal Industry (Group) (600348, 15.07, -7.72%) losing more than five percent.
With the exception of China Merchants Bank (60036, 10.99, +0.83%), Industrial and Commercial Bank of China (601398, 3.94, +0.77%) and Industrial Bank (601166, 12.80, +0.09%), most financial firms edged lower.
The most bearish financial firms were Hong Yuan Securities (000562, 16.20, -10.00%), Soochow Securities (601555, 8.53, -6.06%) and Western Securities (002673, 16.60, -5.79%).
Non-ferrous metals companies mostly retreated and the top losers included Shengda Mining (000603, 19.95, -8.49%), Huludao Zinc Industry (000751, 3.43, -3.92%) and Zhuzhou Smelter Group (600961, 9.98, -5.31%).
China Vanke (000002, 8.75, -3.10%), Poly Estate Group (600048, 10.94, -4.87 %) and Gemdale Corporation (600383, 6.39, -6.44%) were hit hard.
Both Sinopec (600028, 6.37, -0.47%) and PetroChina (601857, 9.08, -0.44%) dropped for two consecutive trading days.
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