Economic optimism boosts index
By Ye Zhen |
March 21, 2013, Thursday
|
Print Edition
Print Edition
SHANGHAI stocks yesterday rose the most in more than two months on reports that Chinese bankers and entrepreneurs are more optimistic about China's economic recovery.
The Shanghai Composite Index leapt 2.66 percent, the biggest gain since January 14, to 2,317.37 points.
An index measuring Chinese bankers' confidence in the domestic economy rose to 72.2 percent in the first quarter, up 17.2 percentage points from the previous quarter, the People's Bank of China said in a report. Another PBOC report showed the entrepreneurs' confidence index rose 7.6 percentage points to 68 percent.
"The reports indicated expectations for economic outlook are warming and gave impetus to the market," Zhang Teng, analyst with Western Securities, said in a note yesterday.
He believed the market "is now oversold and due for a technical rebound."
Sentiment was also buoyed when Tom Demark, the founder of Market Studies LLC, said the stock index will rebound 48 percent from the December 4 level before September. So far the gauge has gained 19 percent since plunging to a four-year low of 1,949 points in December. He correctly predicted two turning points in the Shanghai stock market in February and December.
Lenders rose on a 21st Century Business Herald report saying the China Banking Regulatory Commission may scrap a deposit target for banks, which would release more capital. China Minsheng Banking Corp rose 6.7 percent to 11 yuan. The Industrial Bank jumped 6.4 percent to 20.08 yuan (US$3.23), and China CITIC Bank surged by the daily limit of 10 percent to 5.16 yuan.
Brokerages rose on reports the securities regulator has scrapped the threshold of 500,000 yuan on investors for short selling and margin trading.
CITIC Securities, China's biggest listed brokerage, rose 6.2 percent to 13.45 yuan. Haitong Securities Co gained 6.9 percent to 11.59 yuan, and Founder Securities added 10 percent to close at 7.96 yuan. China Merchants Securities Co leapt 7.7 percent to finish at 13.91 yuan.
The Shanghai Composite Index leapt 2.66 percent, the biggest gain since January 14, to 2,317.37 points.
An index measuring Chinese bankers' confidence in the domestic economy rose to 72.2 percent in the first quarter, up 17.2 percentage points from the previous quarter, the People's Bank of China said in a report. Another PBOC report showed the entrepreneurs' confidence index rose 7.6 percentage points to 68 percent.
"The reports indicated expectations for economic outlook are warming and gave impetus to the market," Zhang Teng, analyst with Western Securities, said in a note yesterday.
He believed the market "is now oversold and due for a technical rebound."
Sentiment was also buoyed when Tom Demark, the founder of Market Studies LLC, said the stock index will rebound 48 percent from the December 4 level before September. So far the gauge has gained 19 percent since plunging to a four-year low of 1,949 points in December. He correctly predicted two turning points in the Shanghai stock market in February and December.
Lenders rose on a 21st Century Business Herald report saying the China Banking Regulatory Commission may scrap a deposit target for banks, which would release more capital. China Minsheng Banking Corp rose 6.7 percent to 11 yuan. The Industrial Bank jumped 6.4 percent to 20.08 yuan (US$3.23), and China CITIC Bank surged by the daily limit of 10 percent to 5.16 yuan.
Brokerages rose on reports the securities regulator has scrapped the threshold of 500,000 yuan on investors for short selling and margin trading.
CITIC Securities, China's biggest listed brokerage, rose 6.2 percent to 13.45 yuan. Haitong Securities Co gained 6.9 percent to 11.59 yuan, and Founder Securities added 10 percent to close at 7.96 yuan. China Merchants Securities Co leapt 7.7 percent to finish at 13.91 yuan.
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