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Stocks jump 2.01% on positive US job data
By Hu Xiaocen |
December 16, 2011, Friday
|
Online Edition
Online Edition
THE Shanghai Composite Index rebounded from its 33-month low today, due to lower-than-expected unemployment claims in the US, and the Chinese stock market watchdog calling for trillions of yuan in stock market investments.
The benchmark index jumped by 2.01 percent to 2,224.84 points at the close of trade today. The environmental protection sector increased the most due to the release of supportive policies by a government agency.
The drop in US jobless claims to a three-and-a-half-year low came unexpected and eased worries about the impact of the European debt crisis on the global economy.
According to the data released yesterday by the US Labor Department, the number of applications for unemployment benefits dropped by 19,000 to 366,000 last week, the fewest since May 2008. Economists had made a forecast of 390,000 claims.
The unemployment rate now stands below 9 percent, the lowest level in 30 months.
The stock market watchdog, China Securities Regulatory Committee has been seeking ways to promote long-term investments in the stock markets.
"Pension, housing funds should follow social security funds and invest in stock markets," said Guo Shuqing, chairman of CSRC, during a forum hosted by Caijing magazine yesterday.
Guo suggested to entrust 2 trillion yuan (US$0.315 trillion) of pension funds and 2.1 trillion of housing funds to a delegated institution, and invest the money in the capital market to benefit all Chinese residents.
The environmental protection sector rose by 5.61 percent leading the rebound, as the government pledged to assist with the industrialization of nine classes of environmental protection technology.
Despite today's stock market rise, some analysts believe it has not bottomed out yet.
"Chinese stocks will struggle next year as the government is unlikely to loosen monetary policy 'aggressively'," Hao Hong, strategist with China International Capital Corp said in a report today.
The benchmark index jumped by 2.01 percent to 2,224.84 points at the close of trade today. The environmental protection sector increased the most due to the release of supportive policies by a government agency.
The drop in US jobless claims to a three-and-a-half-year low came unexpected and eased worries about the impact of the European debt crisis on the global economy.
According to the data released yesterday by the US Labor Department, the number of applications for unemployment benefits dropped by 19,000 to 366,000 last week, the fewest since May 2008. Economists had made a forecast of 390,000 claims.
The unemployment rate now stands below 9 percent, the lowest level in 30 months.
The stock market watchdog, China Securities Regulatory Committee has been seeking ways to promote long-term investments in the stock markets.
"Pension, housing funds should follow social security funds and invest in stock markets," said Guo Shuqing, chairman of CSRC, during a forum hosted by Caijing magazine yesterday.
Guo suggested to entrust 2 trillion yuan (US$0.315 trillion) of pension funds and 2.1 trillion of housing funds to a delegated institution, and invest the money in the capital market to benefit all Chinese residents.
The environmental protection sector rose by 5.61 percent leading the rebound, as the government pledged to assist with the industrialization of nine classes of environmental protection technology.
Despite today's stock market rise, some analysts believe it has not bottomed out yet.
"Chinese stocks will struggle next year as the government is unlikely to loosen monetary policy 'aggressively'," Hao Hong, strategist with China International Capital Corp said in a report today.
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