Key index may continue rebound
By Richard Fu |
October 17, 2011, Monday
|
Print Edition
Print Edition
CHINA'S key stock index may continue its rebound in the short term after posting the best weekly gain since August last week, analysts said.
The Shanghai Composite Index rose 3.1 percent last week to close at 2,431.38 points after the government announced it would provide easier access to loans for cash-strapped small businesses and a unit of China's sovereign wealth fund, China Investment Corp, started to buy more shares in the big state-owned lenders.
But the index dipped 0.3 percent last Friday after data showed consumer prices in the country gained 6.1 percent in September, a level which signaled the government won't loosen monetary tightening any time soon.
"As there are no major changes in the macro sector and in policies, the room for a further rise in the index is relatively limited," said Galaxy Securities analyst Yi Xiaobin. "But CIC's buying is to some extent showing the central government's intention (to support the market) so there will be some opportunities in the short term."
Yi sees the index at between 2,319 and 2,550 this week.
Shenyin Wanguo Securities strategist Qian Qimin echoed Yi's view of a limited rise for the index.
The Shanghai index has lost 13 percent this year.
The Shanghai Composite Index rose 3.1 percent last week to close at 2,431.38 points after the government announced it would provide easier access to loans for cash-strapped small businesses and a unit of China's sovereign wealth fund, China Investment Corp, started to buy more shares in the big state-owned lenders.
But the index dipped 0.3 percent last Friday after data showed consumer prices in the country gained 6.1 percent in September, a level which signaled the government won't loosen monetary tightening any time soon.
"As there are no major changes in the macro sector and in policies, the room for a further rise in the index is relatively limited," said Galaxy Securities analyst Yi Xiaobin. "But CIC's buying is to some extent showing the central government's intention (to support the market) so there will be some opportunities in the short term."
Yi sees the index at between 2,319 and 2,550 this week.
Shenyin Wanguo Securities strategist Qian Qimin echoed Yi's view of a limited rise for the index.
The Shanghai index has lost 13 percent this year.
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