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Stocks break losing streak on renewed confidence
By Hu Xiaocen |
April 5, 2012, Thursday
|
Online Edition
Online Edition
SHANGHAI stocks snapped out of its four-week losing streak after the long weekend, and gained on the launch of the first cross-market Exchange Traded Fund and expanded Qualified Foreign Institutional Investors program.
The Shanghai Composite Index surged 1.74 percent, the biggest jump in two months, to 2302.24 points. Turnover stood at 74.6 billion yuan (US$11.8 billion).
Brokers rallied, on a prosperous business outlook, by 5.59 percent on average. Haitong Securities surged 7.77 percent to 9.71 yuan. Citic Securities, the biggest listed brokerage, jumped 5.78 percent to 12.26 yuan. Industrial Securities advanced 5.53 percent to 10.11 yuan.
China's Securities Regulatory Commission announced yesterday that it has increased the quotas for qualified foreign investment in stocks, bonds, and bank deposits from US$30 billion to US$80 billion. Yuan-denominated foreign investment has also been granted an extra quota of 30 billion yuan, which brings its total amount to 50 billion yuan.
Some analysts said the index climbed today as the increase in QFII quotas will boost blue-chip stocks in China and spur gains for Chinese equities.
Meanwhile, the CSI 300 ETF – China's first cross-exchange ETF – was listed on both the Shanghai and Shenzhen stock exchanges today.
"As the CSI 300 Index covers 70 percent of the total value of China's yuan-denominated A-share market, it reflects the status of China's stock markets more precisely. Currently the price earnings ratio of the index is at a historical low, which makes the new product a valuable investment," said Huatai-Pinebridge Fund Management Co in a report.
According to industry watchers, with more ETF products underway, a comprehensive blue chip market will be built up in China, and investors will have more investment options with lower costs.
"The new ETF will boost the trading volume of stock index futures, pump up liquidity in the markets, and enlarge the position of institutional investors," said Pu Liangjun, an analyst at Xiangcai Securities.
The Shanghai Composite Index surged 1.74 percent, the biggest jump in two months, to 2302.24 points. Turnover stood at 74.6 billion yuan (US$11.8 billion).
Brokers rallied, on a prosperous business outlook, by 5.59 percent on average. Haitong Securities surged 7.77 percent to 9.71 yuan. Citic Securities, the biggest listed brokerage, jumped 5.78 percent to 12.26 yuan. Industrial Securities advanced 5.53 percent to 10.11 yuan.
China's Securities Regulatory Commission announced yesterday that it has increased the quotas for qualified foreign investment in stocks, bonds, and bank deposits from US$30 billion to US$80 billion. Yuan-denominated foreign investment has also been granted an extra quota of 30 billion yuan, which brings its total amount to 50 billion yuan.
Some analysts said the index climbed today as the increase in QFII quotas will boost blue-chip stocks in China and spur gains for Chinese equities.
Meanwhile, the CSI 300 ETF – China's first cross-exchange ETF – was listed on both the Shanghai and Shenzhen stock exchanges today.
"As the CSI 300 Index covers 70 percent of the total value of China's yuan-denominated A-share market, it reflects the status of China's stock markets more precisely. Currently the price earnings ratio of the index is at a historical low, which makes the new product a valuable investment," said Huatai-Pinebridge Fund Management Co in a report.
According to industry watchers, with more ETF products underway, a comprehensive blue chip market will be built up in China, and investors will have more investment options with lower costs.
"The new ETF will boost the trading volume of stock index futures, pump up liquidity in the markets, and enlarge the position of institutional investors," said Pu Liangjun, an analyst at Xiangcai Securities.
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