Shanghai index plunges 5.25% amid panic selling

(chinadaily.com.cn)
Updated: 2007-07-05 16:21

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Red Chips Return

In addition, the imminent return of red-chips as well as the issuance of several multi- billion dollar QDII funds also pose as factors further dampening investors' confidence.

Statistics from Shanghai Securities News show 40 percent of stocks traded in Shanghai and Shenzhen have suffered more than 30 percent loss in the past month.

With the drop of investing sentiments, the number of newly-opened stock accounts also continues to shrink, dropping to 70,132 on Wednesday, the lowest figure since February.

Securities insiders believe that a short term recovery of the market can be expected in a day or two after the recent dive, but a declining trend of the indices is taking shape and investors should be fully aware of risks of the market.

(For more biz stories, please visit Industries)

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