The markets were slightly low on their opening on Monday, and gradually retreated dragged by heavy weights of insurance and real estate, etc, while rallied finitely during the second session. Shanghai Composite Index was reported 1987.76 points (-1.52%) as of closing, and Shenzhen Component Index was closed at 7295.12 points (-1.93%). Total turnover of the markets was Rmb96bn. In view of further capacity shrinkage and bear heavy weights, mainstream capital fluctuation at the after-market mainly contributed to index concussion.

Viewing from TX industry, sectors of media, medical equipment, biological product, telecom, electric component topped the bull market, while insurance, real estate development, real estate, industrial park development and petrochemical tumbled the most.

Sluggish heavy weights prevented index from further rebound on the whole, which was in line with our expectation. As annual report publication drew near and performances of the listed companies largely shrunk in Q4 2008, investors' confidence will be substantially restrained, which will negatively influence the heavy weights and limit stock bounce. On the other hand, capital base is under pressure round the yearend, and it is difficult for restricted stocks to be released within short term; market supply and demand is also limited to propel the stock index. However, demonstration effect from position increase of social insurance might raise expectation towards the investment subjects like fund, etc, which will further support the market. As a result, the market will fluctuate amid current situation.