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Stocks rebound after 4 days of losses

By Ye Zhen | July 30, 2013, Tuesday | Online Edition

SHANGHAI stocks rebounded today following four straight days of losses, bolstered by financial counters, after China’s central bank stepped up reverse-repurchase operations to boost liquidity.
The key Shanghai Composite Index added 0.7 percent to 1,990.06 points.

The People’s Bank of China, the central bank, today injected 17 billion yuan (US$2.8 billion) into the country’s money market via seven-day reverse repurchase agreements, marking the first liquidity injection through an open market operation since February 7.

Market watchers said the amount was small but the move signaled the central bank will take measures to adjust liquidity and alleviate concern of a repeat of the cash squeeze that sapped the market last month.  

Borrowing costs declined following the injection with the seven-day repurchase rate, a gauge of cash strain among banks, falling 8.50 basis points to 5 percent, the first decline in nine days.

Lenders gained among financial institutions. The Industrial and Commercial Bank of China Ltd, the nation's largest lender, added 0.5 percent to 3.91 yuan. Industrial Bank Co gained 0.4 percent to 9.17 yuan. China Minsheng Banking Corp increased 1.5 percent to 8.27 yuan.

Brokerages advanced after data from the Ministry of Finance showed revenue of stamp tax generated from securities transactions increased 27 percent year on year to 22.3 billion yuan in the first half of the year, indicating a recovering vitality in equity trading.

Haitong Securities rose 2.8 percent to 10.44 yuan. Founder Securities increased 2.4 percent to 6.02 yuan. CITIC Securities, China’s largest listed broker, rose 2 percent to 10.57 yuan.

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