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
- 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.
