Record fund injection boosts key index
By Ye Zhen |
August 22, 2012, Wednesday
|
Print Edition
Print Edition
SHANGHAI stocks gained the most in over a week yesterday after the Chinese central bank injected a record amount of funds to ease a credit crunch.
The Shanghai Composite Index rose 0.54 percent to settle at 2,118.27 points.
The People's Bank of China yesterday injected 70 billion yuan via 14-day reverse repurchase agreements and an extra 150 billion yuan via seven-day agreements. The inflow marked the biggest injection in one day since late June when the current round of reverse repurchase operations started.
Shenyin and Wanguo Securities expects policymakers to adopt open market operations more often instead of cutting the bank reserve requirement ratio in the short term.
Huatai Securities expects market liquidity to improve further after brokerages are allowed to conduct margin trading and short selling.
China Securities Finance Corp, an intermediary which borrows cash or securities from banks, fund management firms and insurers and lends them to brokers, said brokerages will 7.5 billion yuan in registered capital to conduct margin trading and short selling.
The firm will boost the pool to 12 billion yuan so that it can lend up to 120 billion yuan to brokerages.
CITIC Securities, China's biggest listed brokerage, added 0.2 percent to 10.77 yuan (US$1.69). Southwest Securities Co rose 1.9 percent to 8.64 yuan and Soochow Securities Co gained 1.1 percent to 7.61 yuan.
The Shanghai Composite Index rose 0.54 percent to settle at 2,118.27 points.
The People's Bank of China yesterday injected 70 billion yuan via 14-day reverse repurchase agreements and an extra 150 billion yuan via seven-day agreements. The inflow marked the biggest injection in one day since late June when the current round of reverse repurchase operations started.
Shenyin and Wanguo Securities expects policymakers to adopt open market operations more often instead of cutting the bank reserve requirement ratio in the short term.
Huatai Securities expects market liquidity to improve further after brokerages are allowed to conduct margin trading and short selling.
China Securities Finance Corp, an intermediary which borrows cash or securities from banks, fund management firms and insurers and lends them to brokers, said brokerages will 7.5 billion yuan in registered capital to conduct margin trading and short selling.
The firm will boost the pool to 12 billion yuan so that it can lend up to 120 billion yuan to brokerages.
CITIC Securities, China's biggest listed brokerage, added 0.2 percent to 10.77 yuan (US$1.69). Southwest Securities Co rose 1.9 percent to 8.64 yuan and Soochow Securities Co gained 1.1 percent to 7.61 yuan.
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