Related News
Shanghai Composite hits 5-week high as liquidity eases
Online Edition
Shanghai stocks continued a strong run today, sending the key index to a five-week high, as liquidity condition improved and a break in initial public offerings provided some relief to investors.
The benchmark Shanghai Composite Index rose 0.84 percent, or 17.60 points, to 2,103.67, the highest closing since January 2. Turnover was 125.3 billion yuan (US$20.5 billion) at the trading close.
“Easing liquidity pressure is the main driving force behind the market rebound,” Dongguan Securities said in a note today.
Funding costs declined today with the seven-day reverse repurchase rate falling 8 basis points to 5.2 percent, even though the central bank refrained from liquidity injection and maturing reverse repos resulted in a net withdrawal of 330 billion yuan.
“The central bank’s monetary policy report also helped to ease concern about liquidity,” the broker added.
The stock index surged 2 percent yesterday after the People’s Bank of China said it will continue a prudent monetary policy and adjust liquidity supply with a combination of tools such as open-market operations, deposit reserve rates and rediscount rates.
A pause in IPOs also boosted the market as data from the China Securities Regulatory Commission showed no companies will get listed until March.
China’s stock market was sapped by a spate of IPOs last month when 43 companies listed their shares on Shanghai and Shenzhen bourses, raising a total of 27.2 billion yuan.
China CITIC Bank Corp Ltd led the advance of lenders, jumping by the daily limit of 10 percent to 4.18 yuan. China Minsheng Banking Corp Ltd rose 3.5 percent to 7.63 yuan. Industrial Bank Co Ltd gained 3.1 percent to 9.77 yuan.
Tourism shares advanced as data showed tourism revenue during this year’s Spring Festival holiday rose 16.4 percent year-on-year to 126.4 billion yuan.
China International Travel Service Ltd surged by the daily limit of 10 percent to 37.83 yuan. Huangshan Tourism Development Co Ltd added 2.5 percent to 11.33 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.
