Shares rise to highest in over 6 weeks
Print Edition
SHANGHAI stocks rose to their highest in more than six weeks yesterday as lenders soared on a Chinese government plan to exchange debt for lower-yielding bonds to curb credit risks of local government financing vehicles.
The Shanghai Composite Index jumped 1.78 percent to end at 3,349.32 points, the highest since January 27.
The Ministry of Finance has unveiled a plan to allow local governments to convert 1 trillion yuan (US$160 billion) of maturing expensive debt into lower-yielding municipal or provincial notes.
Speculation was rife the quota may be raised to 3 trillion yuan and the central bank would directly buy debts from local governments, which some analysts saw as a form of quantitative easing.
“This move implies a significant step forward in China’s deleveraging process,” Helen Qiao, economist with Morgan Stanley said in a note earlier.
“We expect a gradual implementation of debt replacement to help address the structural imbalance in the financial sector,” she said.
The Industrial Bank leapt 9.6 percent to 15.97 yuan, and Shanghai Pudong Development Bank jumped 6.1 percent to 15.12 yuan.
The People’s Bank of China yesterday injected 25 billion yuan to the money market via reverse repurchase agreements, helping ease liquidity amid a flood of new share sales. Subscriptions opened for 11 initial public offerings yesterday.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
