A report on share swaps between A-shares and H-shares has been misrepresented by some foreign media, confirmed the relative department of China Securities Regulatory Commission. The central government is studying the possibility of share swaps between stocks listed on the mainland and in Hong Kong, and there will be no price gap if the share swaps can be realized, reported Bloomberg News, one of the world's largest information sources. According to Bloomberg News, China Securities Regulatory Commission Vice-Chairman Tu Guangshao released the news in an interview on the sidelines of the 17th CPC National Congress on October 17.
"The misrepresented report from the relative media is not correct," insiders from the Information Services Department of China Securities Regulatory Commission told China Business News.
Tu Guangshao said that the stock exchanges on the mainland were not ready for share swaps between stocks listed on the mainland and in Hong Kong, which was confirmed by the supporting staff of the interview attended by the Information Services Department of the China Securities Regulatory Commission on the afternoon of October 17.
Prices of the A-shares of 48 companies are higher than that of their H-shares; some analysts released report predicting a bear market for A-shares and a bull market for H-shares immediately after they heard the news from Bloomberg.
The A-shares market endured a panic decline yesterday and stocks listed in Hong Kong enjoyed a sharp rise. The Hang Seng Index rose 0.57 percent, or 166.34 points, to close at 29465.05 after breaking through the 30,000-mark in the morning session. The Shanghai Composite Index dropped by 3.5 percent, or 211.00 points, to close at 5825.28.
For more details, please read the full story in Chinese (http://www.china-cbn.com/s/n/000002/20071019/020000057997.shtml).
(China.org.cn by Yang Xi October 19, 2007)