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Chinese Investors Enthusiastic in B-Share Market
Chinese stock regulators this week opened decade-old B-share market, designed exclusively for overseas investors, to domestic traders, who queued up outside banks for a trading account.
In the first day of the opening, some 100 local citizens lined up for trading registration outside a banking office of the Bank of Communications in Shanghai, where one of two Chinese stock bourses is operated.
"I want to have a try and took a leave today to register here," said Mr. Chen, 40, an IT engineer.
Although Chen had never traded in the B-share market, he watched for B-share information in the media. "Inactive trading and smaller capitalization caused sluggishness in the B-share market," Chen said.
Chen noted that the opening would increase capital sources and be good for investors as well. "I believe it is profitable to invest in the B-share market," Chen added.
Some securities firms were busy these days with information inquirers. A local firm clerk said they had distributed thousands of B-share trading guide brochures over the past few days. The man gave his surname as Qian.
In other places where banking offices and securities firms were located, streams of investors flooded in for information and registration.
In Huaxia Securities Firm's Nandan Road Office, newly registered B-share accounts matched half of the previous total, or 200. "My staff does not even have time to eat meal," Wu Yihong, the office's deputy manager, said. Wu expected that peak for registering will come in the next two days.
Most B-share investors were confident in the market, considering the country's booming economy.
Still, some investors hesitated. Mr. Guo, 70, a retired aviation engineer opened B-share trading account but is likely to trade after a period of wait-and-see. "Market risk should not be ignored," Guo said.
Since the first B share was listed at the Shanghai Stock Exchange in 1991, the B-share market has added its total listed firms to 114 by February 9 this year. The opening posed a pause in B-share trading at the stock exchanges in both Shanghai and Shenzhen. The market will reopen possibly on Wednesday.
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