Analysts see stock wobbles

By Leo Zhang (Shanghai Daily)
Updated: 2007-03-26 09:10

Shanghai stocks may move back and forth this week as investors are set to become cautious after regulators stepped up efforts to clamp down on stock market manipulation.

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Stock regulator probes stock price surge

Analysts said large-cap firms may again lead the next round of tally on the upcoming launch of stock-index futures, which will track the country's broadest blue-chip index.

The Shanghai Composite Index, which covers yuan-denominated A shares and hard-currency B chips, closed 0.10 percent up at 3,074.29 on Friday, an all-time high.

The barometer sailed in all the five sessions last week and chalked up a combined climb of 4.9 percent.

Industry sources said Chinese regulators had been revving up pace to battle against stock-related crimes after a booming market spurred capital inflows.

The China Securities Regulatory Commission has started a probe into Hangxiao Steel Structure Co over possible insider trading after its shares surged sharply prior to a huge deal announcement.

An investigation may also be conducted into senior officials at GF Securities Co who are suspected to have been involved in insider trading before the broker unveiled a bid to take over a Shenzhen-listed firm.
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