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Shanghai stocks rally over IMF's global economy outlook
By Hu Xiaocen |
April 18, 2012, Wednesday
|
Online Edition
Online Edition
SHANGHAI stocks rallied on a faster global growth projected by the International Monetary Fund, and speculation by investors that the Chinese government will ease monetary policy to bolster the economy.
The Shanghai Composite Index jumped the most in more than two months by 1.96 percent to 2,380.85 points. Turnover stood at 93.1 billion yuan (US$14.7 billion).
Brokerages rallied after Guo Shuqing, the chairman of the security watchdog, pledged to build a multi-level capital market by promoting the over-the-counter market.
"The move benefits the brokerages most," said Li Bo, a commentator with the widely watched First Financial TV program. "Active OTC trading will bring more profits for the market makers."
Citic Securities Co surged 4.8 percent to 13.39 yuan. Haitong Securities Co, advanced 4.3 percent to 10.31 yuan, and Founder Securities Co, soared 8.2 percent to 4.88 yuan.
IMF is more optimistic about global economic recovery and revised its prospect for the world's economic growth to 3.5 percent, 0.2 percentage points higher than its previous forecast in January, given that the euro region is stabilizing and the US market is improving.
"With the easing of the euro crisis, and some good news about the US economy, some optimism has returned," the Associated Press cited Olivier Blanchard, the IMF's chief economist as saying.
Cargo shippers gained on a rosier outlook for Chinese traders, as conditions are improving in the China's major trade partners. China COSCO Holdings Co, Asia's biggest shipper, jumped 2.3 percent to 5.25 yuan. Ningbo Marine Co, advanced 2.7 percent to 3.43 yuan. Zhongchang Marine Co, soared by the 10 percent to the market daily ceiling to 7.58 yuan.
Analysts said the central bank may lower the reserve requirement for commercial banks to bolster the economy as soon as inflationary pressure is wane.
The data published by the Ministry of Commerce renewed hopes for better liquidity.
The ministry said yesterday vegetable prices fell for four weeks running due to bumper supplies, and pork prices continue to retreat for the 11th consecutive week.
"Fiscal deposits surged in April, which has a negative impact on market liquidity," said Sun Jianbo, chief analyst at China Galaxy Securities. "And with falling funds outstanding for foreign exchange, the central bank is likely to cut reserve requirement ratios to ease liquidity crunch."
The Shanghai Composite Index jumped the most in more than two months by 1.96 percent to 2,380.85 points. Turnover stood at 93.1 billion yuan (US$14.7 billion).
Brokerages rallied after Guo Shuqing, the chairman of the security watchdog, pledged to build a multi-level capital market by promoting the over-the-counter market.
"The move benefits the brokerages most," said Li Bo, a commentator with the widely watched First Financial TV program. "Active OTC trading will bring more profits for the market makers."
Citic Securities Co surged 4.8 percent to 13.39 yuan. Haitong Securities Co, advanced 4.3 percent to 10.31 yuan, and Founder Securities Co, soared 8.2 percent to 4.88 yuan.
IMF is more optimistic about global economic recovery and revised its prospect for the world's economic growth to 3.5 percent, 0.2 percentage points higher than its previous forecast in January, given that the euro region is stabilizing and the US market is improving.
"With the easing of the euro crisis, and some good news about the US economy, some optimism has returned," the Associated Press cited Olivier Blanchard, the IMF's chief economist as saying.
Cargo shippers gained on a rosier outlook for Chinese traders, as conditions are improving in the China's major trade partners. China COSCO Holdings Co, Asia's biggest shipper, jumped 2.3 percent to 5.25 yuan. Ningbo Marine Co, advanced 2.7 percent to 3.43 yuan. Zhongchang Marine Co, soared by the 10 percent to the market daily ceiling to 7.58 yuan.
Analysts said the central bank may lower the reserve requirement for commercial banks to bolster the economy as soon as inflationary pressure is wane.
The data published by the Ministry of Commerce renewed hopes for better liquidity.
The ministry said yesterday vegetable prices fell for four weeks running due to bumper supplies, and pork prices continue to retreat for the 11th consecutive week.
"Fiscal deposits surged in April, which has a negative impact on market liquidity," said Sun Jianbo, chief analyst at China Galaxy Securities. "And with falling funds outstanding for foreign exchange, the central bank is likely to cut reserve requirement ratios to ease liquidity crunch."
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