A FIFTH of China’s stock market remains frozen as the number of companies resuming trading slows to a trickle.

    A total of 576 companies were suspended from trading on stock exchanges in Shenzhen and Shanghai yesterday, equivalent to 20 percent of total listings, and down from 635 at the close Friday.

    The halted firms are valued at an average 243 times reported earnings, compared with 164 times for all companies traded in Shanghai and Shenzhen.

    The ongoing suspensions are raising doubts about the sustainability of a rebound in stocks. The Shanghai Composite Index has climbed about 13 percent from its July 8 low, following a 32 percent plunge that helped erase almost US$4 trillion in value.

    The number of companies with trading halts exceeded 1,400, or around 50 percent of listings, during the height of the rout as the government took measures to shore up equities.

    The suspended companies have a combined value of 4 trillion yuan (US$644 billion), equivalent to about 9 percent of China’s total market capitalization. The majority of halts were by shares listed in Shenzhen.

    Policymakers have gone to unprecedented lengths to put a floor under the market as they seek to bolster investor confidence and prevent soured loans backed by equities from damaging the financial system.

    Over the past few weeks, they’ve banned large shareholders from selling stakes and asked institutions to buy shares. (SD-Agencies)