Inflation note ends 8-day winning run
By Ye Zhen |
February 8, 2013, Friday
|
Print Edition
Print Edition
SHANGHAI stocks bucked an eight-day winning streak yesterday after closing lower following a central bank warning that inflation pressure may rise as China's economy recovers.
The Shanghai Composite Index shed 0.66 percent to close at 2,418.53 points.
Prices of labor-intensive products such as services and agriculture goods may climb due to a slowing supply of workers, the People's Bank of China said in its fourth-quarter monetary policy report. The central bank also warned that the rebound in the economy and demand may fuel a rise in consumer prices.
A PBOC survey showed that 41.7 percent of residents expect prices to rise in the current quarter, up 4.7 percentage points from the third quartert.
"There is concern that a rebound in inflation will post risks to economic recovery," Essence Securities said in a report yesterday. "The report signals the central bank is more sensitive to inflation and may strengthen measures to respond to price movements."
Though profit taking occurred ahead of the week-long Spring Festival holiday starting tomorrow, Damo Investment Co said yesterday the long-term outlook is optimistic due to sufficient liquidity.
China Minsheng Banking Corp lost 6 percent to 11 yuan (US$1.76) after surging nearly 90 percent since December 4. The Industrial and Commercial Bank of China, the nation's largest bank, fell 2 percent to 4.33 yuan, and Shanghai Pudong Development Bank declined 4.8 percent to close at 11.43 yuan.
The Shanghai Composite Index shed 0.66 percent to close at 2,418.53 points.
Prices of labor-intensive products such as services and agriculture goods may climb due to a slowing supply of workers, the People's Bank of China said in its fourth-quarter monetary policy report. The central bank also warned that the rebound in the economy and demand may fuel a rise in consumer prices.
A PBOC survey showed that 41.7 percent of residents expect prices to rise in the current quarter, up 4.7 percentage points from the third quartert.
"There is concern that a rebound in inflation will post risks to economic recovery," Essence Securities said in a report yesterday. "The report signals the central bank is more sensitive to inflation and may strengthen measures to respond to price movements."
Though profit taking occurred ahead of the week-long Spring Festival holiday starting tomorrow, Damo Investment Co said yesterday the long-term outlook is optimistic due to sufficient liquidity.
China Minsheng Banking Corp lost 6 percent to 11 yuan (US$1.76) after surging nearly 90 percent since December 4. The Industrial and Commercial Bank of China, the nation's largest bank, fell 2 percent to 4.33 yuan, and Shanghai Pudong Development Bank declined 4.8 percent to close at 11.43 yuan.
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