Analysts predicting bull run in short term
By Ding Yining |
October 9, 2009, Friday
|
Print Edition
Print Edition
SHANGHAI stocks will climb higher in the near future following a pledge by China's finance minister to maintain stable economic growth despite fluctuations caused by concern about an oversupply of shares, analysts said.
The market will reopen today after an eight-day National Day holiday.
"China will continue its proactive fiscal policy and moderately loose monetary policy and will maintain its fiscal stimulus as we have still not seen a stable economic recovery," Finance Minister Xie Xuren said in a statement while attending the annual meeting of the International Monetary Fund in Istanbul on Tuesday.
Liu Mingkang, director of the China Banking Regulatory Commission, was quoted by the Wall Street Journal as saying on Monday that China's new loans in September ran between 300 billion yuan (US$44 billion) and 400 billion yuan, little changed from the 410 billion yuan in August.
"There will still be enough monetary supply in the fourth quarter, and the improving economic statistics will push the index higher," Galaxy Securities wrote in a research report.
The index will run between 2,700 and 3,400 points in the fourth quarter, Shenyin & Wanguo Securities wrote in a research report.
The stabilization of macroeconomic policies and the announcement of corporate earnings this month will have a major impact on the performance of the stock market, the report said.
Domestic companies raised 105 billion yuan via initial public offerings in the third quarter, up 700 percent from the same period of last year. IPOs resumed after being suspended since September last year.
The first 10 companies to be listed on the new Nasdaq-style growth enterprise market in Shenzhen, which is likely to be launched later this month, collected 6.7 billion yuan in subscriptions, more than double their original estimate.
Hong Kong's Hang Seng Index posted gains for three straight days and closed 1.18 percent higher yesterday.
The index rose 2 percent to above 21,000 points on Wednesday, the biggest gain in a single day in three weeks, pushed by strong performance of US stocks and renewed faith in global recovery.
The market will reopen today after an eight-day National Day holiday.
"China will continue its proactive fiscal policy and moderately loose monetary policy and will maintain its fiscal stimulus as we have still not seen a stable economic recovery," Finance Minister Xie Xuren said in a statement while attending the annual meeting of the International Monetary Fund in Istanbul on Tuesday.
Liu Mingkang, director of the China Banking Regulatory Commission, was quoted by the Wall Street Journal as saying on Monday that China's new loans in September ran between 300 billion yuan (US$44 billion) and 400 billion yuan, little changed from the 410 billion yuan in August.
"There will still be enough monetary supply in the fourth quarter, and the improving economic statistics will push the index higher," Galaxy Securities wrote in a research report.
The index will run between 2,700 and 3,400 points in the fourth quarter, Shenyin & Wanguo Securities wrote in a research report.
The stabilization of macroeconomic policies and the announcement of corporate earnings this month will have a major impact on the performance of the stock market, the report said.
Domestic companies raised 105 billion yuan via initial public offerings in the third quarter, up 700 percent from the same period of last year. IPOs resumed after being suspended since September last year.
The first 10 companies to be listed on the new Nasdaq-style growth enterprise market in Shenzhen, which is likely to be launched later this month, collected 6.7 billion yuan in subscriptions, more than double their original estimate.
Hong Kong's Hang Seng Index posted gains for three straight days and closed 1.18 percent higher yesterday.
The index rose 2 percent to above 21,000 points on Wednesday, the biggest gain in a single day in three weeks, pushed by strong performance of US stocks and renewed faith in global recovery.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
