Approval of ban aids momentum

SHENZHEN A shares soared yesterday on the report that China's securities watchdog would not oppose the exchange's move on Tuesday to ban new A share listings.

The Credit Lyonnais Shenzhen A Share Index jumped 67.83 points or 4.18 per cent to 1,688.81. It was the third session of gains after Tuesday's rally of 3.88 per cent and the rise of 0.22 per cent on Wednesday.

''It is a major rebound,'' said a broker at a Shenzhen securities house.

She said the surge was partly due to technical factors after a prolonged slump and partly to a clear-up of uncertainties by Beijing's statement concerning the listing ban.

According to the broker, a Shenzhen newspaper reported that the China Securities Regulatory Commission would not interfere with the exchange's decision to stop share listing.

The Credit Lyonnais Shenzhen B Share Index was down 9.81 points, or 0.76 per cent, to 1278.26, following a slip of 1.89 points.

About half of the counters were untraded.