The Shanghai Composite Index (SCI) rose slightly on Friday following a 4.8% gain – its biggest in six months – on Thursday. Even in Shanghai, that kind of gain rarely happens without some kind of reason; this time, it was the China Securities Regulatory Commission reassuring everyone that it will promote a "stable and healthy" market.
We’re not sure exactly what that means, but investors are taking it as a sign the government will support the market. So much for market reform. The SCI ended the week at 2,861.61 points, barely up from last Friday’s close of 2,860.69.
China Vanke (000002.SZ) had a good week, rising 9.19% and erasing most of the losses of the week before. Investors seemed to forget their worries about the company’s share issue plan, perhaps encouraged by good numbers. Vanke posted sales of US$705.6 million in August, up 18.3% year-on-year. Our other holding, Jiangsu Expressway (600377.SH) was flat for the week.
The Capitalist Roader Fund is down 32.51% since June 3, 2008. The Shanghai Composite Index is down 16.7%.