Hit new high today, it closed above 3500 today (3531 to be exact).
I heard from the news on April 9, there were 180,000 new stock trading accounts being opened. As you may know the new accounts and trading volume of 1st quarter already exceeded last year’s No. Feel the power of Chinese stock investors (or speculators)? Someone did a simple calculation, let’s assume on average day 100,000 people opened the acct, and average account has 50,000 Yuan, that’s about 5 billion Yuan new money every day. If we assume 20 trading days for a month, that’s 100 billion Yuan a month. That’s on the demand (demand for stocks) side.
From supply side, the China Citic Bank is going IPO this month, Bank of Communication is also on the deck, and there are lots of state owned shares ready to float.
A bit more reality check. ICBC (601398), the biggest bank in China, earned 0.18 Yuan last year, closed at 5.56. The PE (ttm) is about 31. The China Merchants Bank (600036), the best retail bank in China, earned 0.49 Yuan last year, closed at 19.10. The PE (ttm) is about 48. It expects to grow earning at 50%, by the way.