Promise of more loans to SMEs lifts shares
By Lydia Chen |
October 14, 2011, Friday
|
Print Edition
Print Edition
SHANGHAI stock market yesterday closed stronger for a third day after the Chinese government promised that banks will lend more to small firms that have been squeezed by credit curbs.
The Shanghai Composite Index gained 0.8 percent to 2,438.79 points.
Investors have been gradually returning to the markets since Monday after Central Huijin, the investment arm of the country's sovereign wealth fund, began buying more shares in the "Big Four" Chinese banks.
China on Wednesday promised that state-owned banks will lend more to small companies that have turned to high-interest unlicensed lenders after regulators tightened access to credit to cool an overheated economy. The State Council, China's Cabinet, unveiled measures such as allowing small companies to issue more bills and bonds while paying less tax.
Zeng Tao, an analyst at Galaxy Securities, cautioned the three-day winning streak may not be able to last given that all the measures are only temporary and the government is determined to maintain a monetary tightening stance.
Cement makers were among the high gainers yesterday.
Huaxin Cement Co jumped 5.8 percent to 19.09 yuan (US$ 2.99). Guangxi Fenglin Wood Industry Group Co climbed by the daily cap of 10 percent to 14.89 yuan.
China is due to release its inflation data today.
The Shanghai Composite Index gained 0.8 percent to 2,438.79 points.
Investors have been gradually returning to the markets since Monday after Central Huijin, the investment arm of the country's sovereign wealth fund, began buying more shares in the "Big Four" Chinese banks.
China on Wednesday promised that state-owned banks will lend more to small companies that have turned to high-interest unlicensed lenders after regulators tightened access to credit to cool an overheated economy. The State Council, China's Cabinet, unveiled measures such as allowing small companies to issue more bills and bonds while paying less tax.
Zeng Tao, an analyst at Galaxy Securities, cautioned the three-day winning streak may not be able to last given that all the measures are only temporary and the government is determined to maintain a monetary tightening stance.
Cement makers were among the high gainers yesterday.
Huaxin Cement Co jumped 5.8 percent to 19.09 yuan (US$ 2.99). Guangxi Fenglin Wood Industry Group Co climbed by the daily cap of 10 percent to 14.89 yuan.
China is due to release its inflation data today.
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