BIZCHINA / Market Reactions
Stocks stay firm, despite banks' ratio adjustment
By Jin Jing (China Daily)
Updated: 2007-04-07 10:42
SHANGHAI: The Shanghai stock market on Friday brushed off the latest
increase in banks' reserve requirement ratio announced on Thursday, with
the index standing at 3323.59, up 0.13 percent from the day before.
Related readings:
Mainland stocks climb to record
Markets react calmly to ratio hikeMarkets react calmly to bank reserve
ratio hike
The Shanghai Composite Index, the most widely-watched indicator of the
mainland stock market, rose 4.45 points in Friday's trading, with 575 out
of 912 companies closing higher.
Turnover on the Shanghai Stock Exchange amounted to 122 billion yuan, up
6 percent from the day before. The smaller Shenzhen Composite Index
climbed 1.2 percent to close at 9268.23.
Analysts said the reserve requirement hike, which takes effect on April
16, will have a minor impact on China's stock markets, though it came a
little earlier than expected.
"This is just a run-of-the-mill adjustment that investors should not
spend any time worrying about," Jonathan Anderson, chief economist of
United Bank of Switzerland (UBS) Asia, said in a written comment.
Stephen Green, senior economist of Standard Chartered Bank, said the
reserve rate hike was within his expectations. "We have been expecting
the People's Bank of China to raise the reserve ratio once every quarter
this year," he said.
As expected, the share prices of all banks fell in Friday's trading. But
the decline was slight. Industrial Bank Ltd, which made its debut on
February 15, was down 3.3 percent to 28 yuan. The Industrial and
Commercial Bank of China fell 1.8 percent to close at 5.45 yuan, while
Bank of China slid 1 percent to close at 5.63 yuan.
"The drop in bank prices was nothing more than an adjustment after rising
for a long time," said Zhang Yidong, an analyst at Industrial Securities.
"The reserve rate hike however has great significance because the stock
market is still flushed with liquidity," he said.
Share prices of companies in the real estate sector rose the most.
Financial Street Holding Co Ltd, the Beijing-based real estate developer,
surged to the daily allowable limit to close at 18.48 yuan. Poly Real
Estate Group Co Ltd rose 8.85 percent to close at 31.6 yuan.
Companies in the non-ferrous metals sector also fared well due to strong
performance in the commodities market, analysts said.
(For more biz stories, please visit Industry Updates)
Learn Chinese, Chinese language
No comments:
Post a Comment