By Li Zengxin (chinadaily.com.cn)
Updated: 2007-09-25 16:31

Shenzhen Component Index [sina.com.cn]

The stock market is facing severe capital dilution pressure from a slew of big IPOs. China Shenhua Energy, starting online subscription today for its 1.8 billion A shares, was priced at 36.99 yuan apiece, 44.76 times its earnings per share for the first half.

Moreover, China Oilfield Service Ltd will be floated in Shanghai on September 28 with its 500 million shares priced at 13.48 yuan apiece. PetroChina, the country's largest oil producer, was approved by the securities regulator for its 4 billion A shares yesterday. The online subscription may start on October 8.

Analysts said with these huge IPOs hitting the market, the share gains may not match those of previous offerings of similar scale and the market, which has more than doubled this year, may slow down in further growth.

In the meantime, the China Securities Regulatory Commission reiterated the ban against securities professionals including staff at the supervisory bodies to trade stocks. In a circular released yesterday, the securities watchdog stressed the importance of the rule and clarified its stance against insider trading and other irregularities by the incumbents.

On the news, China's four listed securities houses - CITIC, Haitong, Hongyuan and Northeast, were all up, with CITIC Securities ranking on top with a 2.8 percent surge.

Other stocks rising against a depressing trend included those in the wholesale and retail, media and culture, and agriculture and forestry industries.

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