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Liquidity easing boosts Shanghai stocks
By Ye Zhen |
August 21, 2012, Tuesday
|
Online Edition
Online Edition
SHANGHAI stocks advanced this morning after China's central bank took steps to improve market liquidity.
The Shanghai Composite Index rose 0.61 percent, or 12.76 points, to 2,119.7 points. Turnover stood at 28.2 billion yuan (US$4.4 billion) at midday.
The People's Bank of China, the central bank, today injected 70 billion yuan via 14-day reverse repurchase agreements and a further 150 billion yuan via 7-day agreements.
Analysts said the central bank currently relies more on reverser repurchase operations to stabilize market liquidity as it remains cautious over its monetary policy. Shenyin & Wanguo Securities believes the nation's policymaker will employ open market operations more often than lowering the bank reserve requirement ratio.
Brokerages gained after China Securities Finance Corp said 7.5 billion yuan in registered capital was ready for brokerages to conduct margin trading and short selling and it would further enlarge the money pool to 12 billion yuan.
China Securities Finance Corp is an intermediary which borrows cash or securities from banks, fund management companies and insurers and lends them to brokerages.
Citic Securities, the biggest listed brokerage, added 0.7 percent to 10.83 yuan. Haitong Securities Co rose 0.7 percent to 8.53 yuan. Soochow Securities Co climbed 1.3 percent to 7.63 yuan.
Tonghua Grape Wine Co led gains among distilleries, jumping by the day limit of 10 percent to 11.08 yuan, after China Alcoholic Drinks Association requested anti-dumping and countervailing probes into European wine exporters.
Kweichow Moutai Co, a high-end liquor producer in China, increased 2.3 percent to 237.98 yuan. Sichuan Tuopai Shede Liquor Co gained 2.6 percent to 33.96 yuan. Shanxi Xinghuacun Fenjiu Liquor Co rose 4.2 percent to 39.60 yuan after it posted a 19.47 percent jump in first-half net profit.
The Shanghai Composite Index rose 0.61 percent, or 12.76 points, to 2,119.7 points. Turnover stood at 28.2 billion yuan (US$4.4 billion) at midday.
The People's Bank of China, the central bank, today injected 70 billion yuan via 14-day reverse repurchase agreements and a further 150 billion yuan via 7-day agreements.
Analysts said the central bank currently relies more on reverser repurchase operations to stabilize market liquidity as it remains cautious over its monetary policy. Shenyin & Wanguo Securities believes the nation's policymaker will employ open market operations more often than lowering the bank reserve requirement ratio.
Brokerages gained after China Securities Finance Corp said 7.5 billion yuan in registered capital was ready for brokerages to conduct margin trading and short selling and it would further enlarge the money pool to 12 billion yuan.
China Securities Finance Corp is an intermediary which borrows cash or securities from banks, fund management companies and insurers and lends them to brokerages.
Citic Securities, the biggest listed brokerage, added 0.7 percent to 10.83 yuan. Haitong Securities Co rose 0.7 percent to 8.53 yuan. Soochow Securities Co climbed 1.3 percent to 7.63 yuan.
Tonghua Grape Wine Co led gains among distilleries, jumping by the day limit of 10 percent to 11.08 yuan, after China Alcoholic Drinks Association requested anti-dumping and countervailing probes into European wine exporters.
Kweichow Moutai Co, a high-end liquor producer in China, increased 2.3 percent to 237.98 yuan. Sichuan Tuopai Shede Liquor Co gained 2.6 percent to 33.96 yuan. Shanxi Xinghuacun Fenjiu Liquor Co rose 4.2 percent to 39.60 yuan after it posted a 19.47 percent jump in first-half net profit.
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