Cut in bank ratio fails to boost key index
By Hu Xiaocen |
May 15, 2012, Tuesday
|
Print Edition
Print Edition
SHANGHAI stocks yesterday fell to the lowest in three weeks as investors speculated a cut in banks' reserve requirement ratios won't be enough to stem an economic slowdown.
The Shanghai Composite Index lost 0.6 percent to end at 2,380.73 points, the lowest close since April 19.
The central bank announced on Saturday a reserve ratio cut of 0.5 percentage point for the third time in six months, to be effective on Friday. The move is expected to release 420 billion yuan (US$67 billion) for lending to bolster the nation's slowing economy.
Analysts said the long-awaited move has limited impact on the stock market because investors have been digesting the expected easing since PBOC Governor Zhou Xiaochuan said in March that China has "plenty room" to cut the ratio.
Meanwhile, the weak credit demand amid China's slowing export growth and industrial output in April hit banks.
China Construction Bank and the Agricultural Bank of China both fell 1.5 percent to 4.61 yuan and 2.69 yuan.
The Shanghai Composite Index lost 0.6 percent to end at 2,380.73 points, the lowest close since April 19.
The central bank announced on Saturday a reserve ratio cut of 0.5 percentage point for the third time in six months, to be effective on Friday. The move is expected to release 420 billion yuan (US$67 billion) for lending to bolster the nation's slowing economy.
Analysts said the long-awaited move has limited impact on the stock market because investors have been digesting the expected easing since PBOC Governor Zhou Xiaochuan said in March that China has "plenty room" to cut the ratio.
Meanwhile, the weak credit demand amid China's slowing export growth and industrial output in April hit banks.
China Construction Bank and the Agricultural Bank of China both fell 1.5 percent to 4.61 yuan and 2.69 yuan.
- 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.
