Liquidity and hopes lift index
By Feng Jianmin |
November 3, 2011, Thursday
|
Print Edition
Print Edition
SHANGHAI'S key stock index closed yesterday at the highest level in six weeks on improving liquidity and expectations the central government may ease its monetary policies.
The Shanghai Composite Index rose 1.4 percent to 2,504.11 points, the highest since September 21.
The four major state-owned banks in China increased their lending significantly in the last week of October, indicating a relatively easy monetary policy in the fourth quarter, the China Securities Journal reported yesterday.
The seven-day repurchase rate, an indication of the cost of borrowing among commercial banks, fell yesterday for the fourth day from nearly 5 percent to 3.7 percent after the central bank halted repurchasing on Tuesday. Observers said market liquidity was improving as the People's Bank of China had eased its tight liquidity measures.
"The market was briefly weighed down by weak performances of overseas markets yesterday, but investors are more active now that liquidity is better," said Li Jianfeng, an analyst at Chinadragon Securities.
Software companies led gainers on speculation that China may cut the tax for the sector to boost growth. Shanghai may cut the business tax on software firms as a trial, the Shanghai Securities News reported yesterday, citing no sources.
Ufida Software Co jumped 6 percent to 21.88 yuan (US$3.44).
Railway-related firms gained after Xinhua news agency said the railway ministry will get over 200 billion yuan in financial support. The report did not say where the money came from.
China Railway Group jumped 5.1 percent to 3.27 yuan. CSR rose 4.3 percent to close at 5.80 yuan.
The Shanghai Composite Index rose 1.4 percent to 2,504.11 points, the highest since September 21.
The four major state-owned banks in China increased their lending significantly in the last week of October, indicating a relatively easy monetary policy in the fourth quarter, the China Securities Journal reported yesterday.
The seven-day repurchase rate, an indication of the cost of borrowing among commercial banks, fell yesterday for the fourth day from nearly 5 percent to 3.7 percent after the central bank halted repurchasing on Tuesday. Observers said market liquidity was improving as the People's Bank of China had eased its tight liquidity measures.
"The market was briefly weighed down by weak performances of overseas markets yesterday, but investors are more active now that liquidity is better," said Li Jianfeng, an analyst at Chinadragon Securities.
Software companies led gainers on speculation that China may cut the tax for the sector to boost growth. Shanghai may cut the business tax on software firms as a trial, the Shanghai Securities News reported yesterday, citing no sources.
Ufida Software Co jumped 6 percent to 21.88 yuan (US$3.44).
Railway-related firms gained after Xinhua news agency said the railway ministry will get over 200 billion yuan in financial support. The report did not say where the money came from.
China Railway Group jumped 5.1 percent to 3.27 yuan. CSR rose 4.3 percent to close at 5.80 yuan.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
