The story appears on

Page A11

April 25, 2011

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Finance

Index may remain flat this week

THE Shanghai stock market is likely to remain rather flat this week as investors are still cautious over what other measures the Chinese government may implement to battle stubbornly high inflation, according to market watchers.

The Shanghai Composite Index dropped 1.3 percent last week to close at 3,010.52 points on Friday, the biggest weekly decline since the five days ended January 21.

"Investors will remain rather cautious amid fears spending cuts in the United States' Federal budget to trim its deficit may damp economic growth,'' Rising Securities' research note said.

The brokerage also cautioned that rising raw material prices may curb China's economic output and that higher inflation may signal an even tighter monetary policy from the government in the second quarter.

Shenyin Wanguo Securities analyst Qian Qimin suggests that the market may get a boost from companies reporting better earnings.

"Although concerns about tighter monetary policy may not fade in the short term, better-than-expected first quarter earnings reports by companies may push up the market in the short term," Qian wrote in a report.




 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend