Average P/E ratio on Shenzhen exchange nears 70 times

According to the data released yesterday by the Shenzhen Stock Exchange, last year all the Shenzhen-listed companies raised a total of 117,521 million yuan, up 90.21% year on year. The Small and Medium Enterprise Market achieved transcendental growth, grossing 44,858 million yuan in total raised funds, up 155.54%. And 100 companies floated their stocks on the SME board, pushing the total figure to 202.

By the end of 2007, the value of the Shenzhen market totaled 5.73 trillion yuan, a rise of 222.07% on the previous year. The market value of the SME board broke the 1 trillion marking to 1.064684 trillion yuan.

On the last trading day of 2007, the Shenzhen Component Index closed at 17700.62 points, registering a year-long increase of 166.29% after reaching a high of 19600.03 points. While the SSE SME Index closed at 6247.56 points, up 153.17%.

In 2007, the turnover of local stocks totaled 15512.194 billion yuan, including 1617.366 billion yuan from the SME board, up 378.74% and 431.32% respectively. Turnover of Shenzhen-listed funds, bonds and warrants reached 432.185 billion, 26.784 billion, and 2793.394 billion yuan, suggesting a rise of 351.23%, 81.04% and 463.36% respectively.

In the same period, the weighted share price on the Shenzhen bourse averaged 20.6 yuan a share, with the average P/E ratio at 69.74 times. The two figures for the SME board stood at 31.35 yuan per share and 85.07 times, both witnessing an over one-fold increase from the previous year.