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Index up as debt worries ease
By Feng Jianmin |
September 28, 2011, Wednesday
|
Print Edition
Print Edition
SHANGHAI'S key stock index rose for the first time in four days as worries over the European debt crisis ease, but the gains in the market were limited by concerns over China's tight liquidity measures and weakening industrial performance.
The Shanghai Composite Index added 0.9 percent to 2,415.05 points, halting a three-day, 4.8 percent decline.
The gain followed those in neighboring markets after investors were buoyed by two days of improvement in United States equities amid optimism that European leaders may agree on ways to resolve the eurozone's credit crisis.
Japan's Nikkei 225 Stock Average rose 2.8 percent in Tokyo. South Korea's Kospi Index surged 5 percent, and Hong Kong's Hang Seng Index added 4.2 percent.
"The gains may not last as market liquidity is tight and the economic situation in Europe and the US may still worsen," said Zhao Youqi, an analyst at Changjiang Securities. "Investors are cautious."
Concerns over liquidity in China, at its tightest since September 1, still prevailed. The benchmark seven-day repurchase rate, an indicator of cost of borrowing among banks, added 0.8567 percentage point to 4.6667 percent yesterday.
Meanwhile, the profit growth at China's industrial companies weakened in the first eight months of the year due to tighter credit and a contraction in manufacturing activity, the National Bureau of Statistics said yesterday.
Property firms were mixed after Standard & Poor's said in a report yesterday that they faced an "increasingly severe" credit outlook. Poly Real Estate Group Co rose 0.7 percent to 9.16 yuan. Gemdale Corp fell 1 percent to 5.05 yuan.
Ping An Insurance Co, China's second-biggest insurer, rose after dismissing rumors its main shareholders have cut their stakes. Its shares gained 1.8 percent to 35 yuan.
Jiangxi Copper Co, the nation's biggest producer of the metal, gained 0.9 percent to close at 27.03 yuan.
The Shanghai Composite Index added 0.9 percent to 2,415.05 points, halting a three-day, 4.8 percent decline.
The gain followed those in neighboring markets after investors were buoyed by two days of improvement in United States equities amid optimism that European leaders may agree on ways to resolve the eurozone's credit crisis.
Japan's Nikkei 225 Stock Average rose 2.8 percent in Tokyo. South Korea's Kospi Index surged 5 percent, and Hong Kong's Hang Seng Index added 4.2 percent.
"The gains may not last as market liquidity is tight and the economic situation in Europe and the US may still worsen," said Zhao Youqi, an analyst at Changjiang Securities. "Investors are cautious."
Concerns over liquidity in China, at its tightest since September 1, still prevailed. The benchmark seven-day repurchase rate, an indicator of cost of borrowing among banks, added 0.8567 percentage point to 4.6667 percent yesterday.
Meanwhile, the profit growth at China's industrial companies weakened in the first eight months of the year due to tighter credit and a contraction in manufacturing activity, the National Bureau of Statistics said yesterday.
Property firms were mixed after Standard & Poor's said in a report yesterday that they faced an "increasingly severe" credit outlook. Poly Real Estate Group Co rose 0.7 percent to 9.16 yuan. Gemdale Corp fell 1 percent to 5.05 yuan.
Ping An Insurance Co, China's second-biggest insurer, rose after dismissing rumors its main shareholders have cut their stakes. Its shares gained 1.8 percent to 35 yuan.
Jiangxi Copper Co, the nation's biggest producer of the metal, gained 0.9 percent to close at 27.03 yuan.
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