Shanghai stocks soar to nearly 7-year high
Print Edition
SHANGHAI stocks rose to its highest in almost seven years yesterday, as market sentiment remained high over likely new financial measures seen lifting China’s economy in times of slowing growth.
The Shanghai Composite Index gained 1.55 percent to 3,502.85 points. The previous peak was 3,544.18 on May 21, 2008. The gauge has risen 73 percent during the past 12 months.
On Sunday, Chinese Premier Li Keqiang said policy-makers will prop up the economy if growth was at risk of breaching the lower limit, or hurt employment and incomes.
Among others, Li pledged that China will continue to push forward reforms in the industrial sector by allowing more private investment into state-owned companies and strengthen the role of a market mechanism in the economy. He also proposed “Made in China 2025” strategy to promote integration of information and industrialization.
The steel industry soared. Xinjiang Ba Yi Iron & Steel rallied by the daily 10 percent limit to 6.35 yuan (US$1.02), Anyang lron And Steel Co surged 9.88 percent to 3.78 yuan, and Nanjing Iron & Steel Co jumped 9.26 percent to 4.60 yuan.
The Ministry of Finance also announced yesterday that it had issued guidelines on local government bond issuance. This is seen as a significant move following a pilot scheme that was launched in May that allowed 10 local governments, including Shanghai, to issue and repay bonds directly.
Nomura said the guidelines are an important step in reforming China’s current budget system and investment and financing mechanism. It will help resolve local government financing problems, mitigate systemic financial risks and reduce the financing costs of local governments, all of which should push down China’s yield curve.
The remarkable value of margin trading, or shares purchased with borrowed money, on the Shanghai Stock Exchange had risen to a record 880.6 billion yuan as trading closed on Friday.
Huatai Securities rose 4.33 percent to 23.87 yuan, Citic Securities gained 2.88 percent to 29.60 yuan, and Haitong Securities added 2.60 percent to 21.73 yuan.
The People’s Bank of China yesterday conducted 20 billion yuan of seven-day reverse repos at an interest rate of 3.65 percent that injected new liquidity in the market.
- 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.
