Related News
Investors upbeat over market
By Vivian Jin |
February 21, 2011, Monday
|
Print Edition
Print Edition
INVESTORS may continue to be upbeat about the Shanghai stock market this week despite the central government's announcement to raise the reserve requirement ratio on banks to rein in inflation.
The Shanghai Composite Index gained 2.6 percent to close at 2,899.79 last week before the government unveiled a 0.5-percent hike in the reserves late Friday. The hike was the second so far this year and came after six reserve increases since 2010.
The reserve hike, to be effective from Thursday, will likely freeze over 350 billion yuan from the market. Most analysts said the move was within market expectations.
Huang Xiangbin, an analyst at Cinda Securities Co, said the reserve hike would affect banking and real estate but the stock market was not likely to see a further slump at its current low value.
Investors are banking on the release of positive earnings reports late this week to shore up the market which is also seen to benefit from the diversion of funds into stocks as the government is tightening the housing market.
As the Consumer Price Index rose to an annual 4.9 percent in January, many analysts believed another rise in interest rates or the reserve ratio will be unveiled in March.
Zhang Gang, an analyst at Southwest Securities, predicted the market at between 2,850 and 2,950 this week.
The Shanghai Composite Index gained 2.6 percent to close at 2,899.79 last week before the government unveiled a 0.5-percent hike in the reserves late Friday. The hike was the second so far this year and came after six reserve increases since 2010.
The reserve hike, to be effective from Thursday, will likely freeze over 350 billion yuan from the market. Most analysts said the move was within market expectations.
Huang Xiangbin, an analyst at Cinda Securities Co, said the reserve hike would affect banking and real estate but the stock market was not likely to see a further slump at its current low value.
Investors are banking on the release of positive earnings reports late this week to shore up the market which is also seen to benefit from the diversion of funds into stocks as the government is tightening the housing market.
As the Consumer Price Index rose to an annual 4.9 percent in January, many analysts believed another rise in interest rates or the reserve ratio will be unveiled in March.
Zhang Gang, an analyst at Southwest Securities, predicted the market at between 2,850 and 2,950 this week.
- 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.
