Investors hold back as market may fall
By Pan Xiaoyi |
January 24, 2011, Monday
|
Print Edition
Print Edition
CHINESE mainland's stock market will continue to fall amid liquidity pressure and speculation on further tightening measures including another interest rate hike, analysts said.
The benchmark Shanghai Composite Index fell 2.7 percent last week, the largest weekly loss in two months, to 2,715.29.
"Market investors are increasingly willing to sit on the sidelines amid growing caution over tighter market liquidity and more stringent policies (on lending)," said Yi Xiaobin, an analyst at Galaxy Securities. "In addition, an increasing number of companies fell below their public offering price on their debut, further dampening investor confidence."
Last Tuesday, all five new listings fell below their offering prices, indicating weak market sentiment.
Last Thursday, the key gauge fell 2.92 percent to below 2,700 points.
"Still-strong economic growth will give those in the government in favour of further monetary tightening actions greater reason to act," said Alaistair Chan, an economist at Moody's Analytics.
Qian Qimin, an analyst at Shenyin Wanguo Securities, said "The recent freezing weather along with the -upcoming Spring Festival may push up the CPI in January, fanning speculations China will raise the reserve requirement ratio or increase interest rates around the holiday."
The benchmark Shanghai Composite Index fell 2.7 percent last week, the largest weekly loss in two months, to 2,715.29.
"Market investors are increasingly willing to sit on the sidelines amid growing caution over tighter market liquidity and more stringent policies (on lending)," said Yi Xiaobin, an analyst at Galaxy Securities. "In addition, an increasing number of companies fell below their public offering price on their debut, further dampening investor confidence."
Last Tuesday, all five new listings fell below their offering prices, indicating weak market sentiment.
Last Thursday, the key gauge fell 2.92 percent to below 2,700 points.
"Still-strong economic growth will give those in the government in favour of further monetary tightening actions greater reason to act," said Alaistair Chan, an economist at Moody's Analytics.
Qian Qimin, an analyst at Shenyin Wanguo Securities, said "The recent freezing weather along with the -upcoming Spring Festival may push up the CPI in January, fanning speculations China will raise the reserve requirement ratio or increase interest rates around the holiday."
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
