Related News
Record cash injection lift Shanghai stocks
By Ye Zhen |
September 28, 2012, Friday
|
Online Edition
Online Edition
SHANGHAI stocks advanced this morning after the central bank injected a record amount of liquidity into the money market this week to ease a cash crunch ahead of the week-long National Day holiday.
The benchmark Shanghai Composite Index gained 1.01 percent, or 20.68 points, to 2,077 points. Turnover stood at 32.3 billion yuan (US$5.1 billion) by the noon break.
The People's Bank of China, the central bank, yesterday injected 50 billion yuan into the country's financial system through 14-day reverse repurchase agreements and an additional 130 billion yuan via 28-day agreements -- two days after it released 290 billion yuan via reverse repo operations.
Excluding matured agreements and bills, a total of 365 billion yuan of cash has been put into circulation though open market operations this week, the biggest weekly injection on record.
The effect of such a massive cash injection is almost equal to that of a 0.5 percentage cut in required reserve ratio and helped to ease tight liquidity ahead of the holiday, analysts said.
Gold miners led the gains after gold future for December delivery rose 1.5 percent to a seven-month high. Zijin Mining Group Co, the nation's largest gold producer, increased 4.9 percent to 4.05 yuan. Shandong Gold Mining Co climbed 4.1 percent to 41.84 yuan. Zhongjin Gold Corp jumped 5.3 percent to 18.23 yuan.
Property developers also advanced. China Vanke, the nation's biggest developer, added 0.9 percent to 8.28 yuan. Poly Real Estate, the second largest developer, rose 2.4 percent to 10.59 yuan. Gemdale Corporation increased 2.7 percent to 4.98 yuan.
The benchmark Shanghai Composite Index gained 1.01 percent, or 20.68 points, to 2,077 points. Turnover stood at 32.3 billion yuan (US$5.1 billion) by the noon break.
The People's Bank of China, the central bank, yesterday injected 50 billion yuan into the country's financial system through 14-day reverse repurchase agreements and an additional 130 billion yuan via 28-day agreements -- two days after it released 290 billion yuan via reverse repo operations.
Excluding matured agreements and bills, a total of 365 billion yuan of cash has been put into circulation though open market operations this week, the biggest weekly injection on record.
The effect of such a massive cash injection is almost equal to that of a 0.5 percentage cut in required reserve ratio and helped to ease tight liquidity ahead of the holiday, analysts said.
Gold miners led the gains after gold future for December delivery rose 1.5 percent to a seven-month high. Zijin Mining Group Co, the nation's largest gold producer, increased 4.9 percent to 4.05 yuan. Shandong Gold Mining Co climbed 4.1 percent to 41.84 yuan. Zhongjin Gold Corp jumped 5.3 percent to 18.23 yuan.
Property developers also advanced. China Vanke, the nation's biggest developer, added 0.9 percent to 8.28 yuan. Poly Real Estate, the second largest developer, rose 2.4 percent to 10.59 yuan. Gemdale Corporation increased 2.7 percent to 4.98 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.
