Securities reform lifts investor confidence

Since China launched its reform of the domestic capital markets in May 2005, requiring listed companies to convert non-tradable state-owned shares into tradable shares, many companies have reported positive interim results, which have lifted investor confidence in the A-share market.

By the end of August 2006, of the 1,392 domestic listed companies in China, 1,388 had released higher-than-expected earnings forecasts, reports China Daily. Business in the life insurance, industrial, tollroad and aluminium sectors experienced an upswing, while property, casualty, insurance and coal companies reported lower-than-expected earnings.