China News Service, Beijing, February 5 (Reporter Chen Kangliang) China's A-shares fluctuated on Monday, the 5th, with major stock indexes rising and falling. The representative Shanghai Composite Index fell below 2,700 points in early trading that day, and then rose and turned red. Although it declined in late trading, it successfully held the 2,700-point mark.
As of the close of the day, the Shanghai Composite Index reported 2,702 points, a decrease of 1.02%; the Shenzhen Component Index reported 7,964 points, a decrease of 1.13%; the GEM Index reported 1,562 points, an increase of 0.79%.
In terms of specific sectors, the banking sector performed well that day and rose against the trend. Among them, the share prices of individual stocks such as China CITIC Bank, Bank of China, and Industrial and Commercial Bank of China all rose by more than 2%.
Song Zhenghao, an analyst at Orient Securities, said that the A-share market fluctuated widely today. The Shanghai Stock Index fell below 2,700 points in early trading and rebounded quickly, and finally successfully held 2,700 points, proving that it has strong support at 2,700 points, especially for banks, insurance, etc. The weighted sector has recently been favored by funds due to factors such as high dividend yields, and has played an important role in stabilizing the stock index.
In response to the closely watched stock pledge risk, a spokesman for the China Securities Regulatory Commission said on the same day that since 2018, the China Securities Regulatory Commission, together with relevant departments, has continued to promote the resolution of stock pledge risks, and the overall risk of stock pledges in the Shanghai and Shenzhen stock exchanges has dropped significantly. As of February 2, the proportion of stock pledged market value in the two cities' total market value has dropped from 10.51% at the peak in 2018 to 3.38%, and the balance of pledged financing has dropped from 2.69 trillion yuan (RMB, the same below) to 1.59 trillion yuan. The number of listed companies with a pledge ratio of the largest shareholder exceeding 80% dropped from 702 to 227. The China Securities Regulatory Commission will closely monitor and take effective measures to prevent stock pledge risks. (over)