Index rises on reserve ratio cut rumors
By Lilith Hu |
June 16, 2012, Saturday
|
Print Edition
Print Edition
SHANGHAI stocks rose yesterday on speculation the central bank will further cut the bank reserve requirement ratio and interest rates to bolster China's weakened economic growth.
The Shanghai Composite Index added 0.47 percent to 2,306.85 points, capping a weekly gain of 1.1 percent.
"Stabilizing growth relies on rapid expansion of private investment and consumption. Experts believe the central bank may further cut interest rates twice, and lower the reserve requirement for banks three times within this year," People's Daily said yesterday, citing Zheng Xinli, vice head of the China Center for International Economic Exchanges.
Lenders rallied on speculation they may be able to set aside less cash to ease their liquidity crunch. The Industrial and Commercial Bank of China, the world's biggest bank by market value, rose 0.76 percent to 3.98 yuan (63 US cents). China Everbright Bank soared 2.9 percent to 2.84 yuan.
Property developers fell after the central bank and the banking regulator denied any plans to relax curbs on housing loans. Poly Real Estate Group Co, China's second-biggest listed developer, lost 2.3 percent to 14.37 yuan.
Shares of Inner Mongolia Yili Industrial Group Co, China's biggest diary producer, plunged by the daily limit of 10 percent and closed at 21.85 yuan after it announced a recall of tainted baby milk powder that can damage the central nervous system of children.
The Shanghai Composite Index added 0.47 percent to 2,306.85 points, capping a weekly gain of 1.1 percent.
"Stabilizing growth relies on rapid expansion of private investment and consumption. Experts believe the central bank may further cut interest rates twice, and lower the reserve requirement for banks three times within this year," People's Daily said yesterday, citing Zheng Xinli, vice head of the China Center for International Economic Exchanges.
Lenders rallied on speculation they may be able to set aside less cash to ease their liquidity crunch. The Industrial and Commercial Bank of China, the world's biggest bank by market value, rose 0.76 percent to 3.98 yuan (63 US cents). China Everbright Bank soared 2.9 percent to 2.84 yuan.
Property developers fell after the central bank and the banking regulator denied any plans to relax curbs on housing loans. Poly Real Estate Group Co, China's second-biggest listed developer, lost 2.3 percent to 14.37 yuan.
Shares of Inner Mongolia Yili Industrial Group Co, China's biggest diary producer, plunged by the daily limit of 10 percent and closed at 21.85 yuan after it announced a recall of tainted baby milk powder that can damage the central nervous system of children.
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