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Record liquidity easing fails to lift Shanghai index
By Ye Zhen |
September 25, 2012, Tuesday
|
Online Edition
Online Edition
SHANGHAI stocks ended lower today amid concerns that the government may hold off stimulus measures after injecting a record amount of liquidity into the market and the nation's economy is losing steam as Standard & Poor's lowered its forecast for China's economic growth.
The key Shanghai Composite Index shed 0.19 percent to close at 2,029.29 points. Turnover was 38.4 billion yuan (US$6.1 billion) at the trading close.
People's Bank of China today injected 100 billion yuan into the domestic financial market via 14-day reverse repurchase agreements and an extra 190 billion yuan through 28-day agreements, marking the central bank's biggest-ever daily reverse repurchase operation.
The move dampened the hopes for more stimulus packages, analysts said.
International credit rating agency Standard & Poor's yesterday pared China's GDP growth forecast to 7.5 percent from 8 percent, citing diminishing government intention to boost economy.
"Our lower forecast for China recognizes that the central government had elected not to inject an economic stimulus of a size and speed necessary for an 8 percent growth rate," S&P credit analyst Andrew Palmer said in a statement.
The rating agency also cut GDP growth outlook for other Asia-Pacific countries including India, Japan and Singapore due to China's economic slowdown, prolonged euro-zone crisis and a slower recovery of the US economy.
Gold stocks led the market down. Zijin Mining Group Co, the nation's largest gold producer, dropped 3 percent to 3.91 yuan. Shandong Gold Mining Co lost 3 percent to 39.76 yuan. Zhongjin Gold Corp slumped 4.5 percent to 17.29 yuan.
Media and entertainment companies also fell. Northern United Publishing & Media Group Co shed 1.4 percent to 7 yuan. Jiangsu Phoenix Publishing & Media Corp slipped 1.2 percent to 8.40 yuan.
The key Shanghai Composite Index shed 0.19 percent to close at 2,029.29 points. Turnover was 38.4 billion yuan (US$6.1 billion) at the trading close.
People's Bank of China today injected 100 billion yuan into the domestic financial market via 14-day reverse repurchase agreements and an extra 190 billion yuan through 28-day agreements, marking the central bank's biggest-ever daily reverse repurchase operation.
The move dampened the hopes for more stimulus packages, analysts said.
International credit rating agency Standard & Poor's yesterday pared China's GDP growth forecast to 7.5 percent from 8 percent, citing diminishing government intention to boost economy.
"Our lower forecast for China recognizes that the central government had elected not to inject an economic stimulus of a size and speed necessary for an 8 percent growth rate," S&P credit analyst Andrew Palmer said in a statement.
The rating agency also cut GDP growth outlook for other Asia-Pacific countries including India, Japan and Singapore due to China's economic slowdown, prolonged euro-zone crisis and a slower recovery of the US economy.
Gold stocks led the market down. Zijin Mining Group Co, the nation's largest gold producer, dropped 3 percent to 3.91 yuan. Shandong Gold Mining Co lost 3 percent to 39.76 yuan. Zhongjin Gold Corp slumped 4.5 percent to 17.29 yuan.
Media and entertainment companies also fell. Northern United Publishing & Media Group Co shed 1.4 percent to 7 yuan. Jiangsu Phoenix Publishing & Media Corp slipped 1.2 percent to 8.40 yuan.
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