Key index drops to lowest in 2 weeks
By Feng Jianmin |
March 16, 2011, Wednesday
|
Print Edition
Print Edition
SHANGHAI stocks dropped to the lowest in two weeks yesterday as investors worried about another interest rate hike and the risk of radiation leaks in Japan escalated.
The Shanghai Composite Index fell 1.4 percent to 2,896.26, the lowest close since February 25.
The central bank issued 10 billion yuan worth of one-year bill yesterday with an interest rate of 3.2 percent, 0.2 percentage point higher than last week. The rate is also above the current key one-year deposit rate of 3 percent.
Analysts said that any yield change for one-year central bank bill usually indicates a change in deposit rate, and an interest rate hike is possible in the short term.
"There is still room for an interest rate hike since inflationary pressure remains high and current deposit interests are low," said Lin Songli, an analyst at Guosen Securities.
Japan's Nikkei 225 stock average dived 10.6 percent yesterday as the nuclear crisis worsened.
Dongfang Electric, which makes nuclear power-related products, plunged 5.2 percent to 30.20 yuan (US$4.60).
The Shanghai Composite Index fell 1.4 percent to 2,896.26, the lowest close since February 25.
The central bank issued 10 billion yuan worth of one-year bill yesterday with an interest rate of 3.2 percent, 0.2 percentage point higher than last week. The rate is also above the current key one-year deposit rate of 3 percent.
Analysts said that any yield change for one-year central bank bill usually indicates a change in deposit rate, and an interest rate hike is possible in the short term.
"There is still room for an interest rate hike since inflationary pressure remains high and current deposit interests are low," said Lin Songli, an analyst at Guosen Securities.
Japan's Nikkei 225 stock average dived 10.6 percent yesterday as the nuclear crisis worsened.
Dongfang Electric, which makes nuclear power-related products, plunged 5.2 percent to 30.20 yuan (US$4.60).
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