Wen's comment helps index to close up
By Xiao Chen |
October 27, 2011, Thursday
|
Print Edition
Print Edition
SHANGHAI stocks yesterday rose for a third day after Chinese Premier Wen Jiabao pledged to fine-tune the country's economic policy, which sparked talk of an easing in the near term.
The Shanghai Composite Index added 0.7 percent to 2,427.48 points, capping a three-day, 4.8 percent gain.
Wen said on Tuesday during a visit to Tianjin that officials will make adjustments at a "suitable time and by an appropriate degree" and will maintain "reasonable" growth in money supply. His remark signaled the first time he has indicated that a minor change to the government's anti-inflation measures may be possible.
Wen, however, stressed that tackling inflation remained a top priority for the government. The government should reinforce price controls and surveillance, and ensure stable food supply, he said. China's inflation eased to 6.1 percent in September from a three-year high of 6.5 percent in July.
In a note yesterday, China International Capital Corp said: "This is real action to ease tightening measures in certain areas."
The note added: "The move will soon be reflected in stock prices as investors anticipate the government's macro-policy may change."
Poly Real Estate Group, China's second-largest listed property developer, added 5.5 percent to 9.79 yuan (US$1.54), after Guotai Junan Securities said the central bank may lower the reserve requirement ratio for small and medium-sized banks by the end of this year and cut interest rates in the second quarter in 2012 in response to Wen's comments.
Anhui Conch, China's biggest cement maker, gained 2.1 percent to close at 19.56 yuan, its highest finish since September 5.
The Shanghai Composite Index added 0.7 percent to 2,427.48 points, capping a three-day, 4.8 percent gain.
Wen said on Tuesday during a visit to Tianjin that officials will make adjustments at a "suitable time and by an appropriate degree" and will maintain "reasonable" growth in money supply. His remark signaled the first time he has indicated that a minor change to the government's anti-inflation measures may be possible.
Wen, however, stressed that tackling inflation remained a top priority for the government. The government should reinforce price controls and surveillance, and ensure stable food supply, he said. China's inflation eased to 6.1 percent in September from a three-year high of 6.5 percent in July.
In a note yesterday, China International Capital Corp said: "This is real action to ease tightening measures in certain areas."
The note added: "The move will soon be reflected in stock prices as investors anticipate the government's macro-policy may change."
Poly Real Estate Group, China's second-largest listed property developer, added 5.5 percent to 9.79 yuan (US$1.54), after Guotai Junan Securities said the central bank may lower the reserve requirement ratio for small and medium-sized banks by the end of this year and cut interest rates in the second quarter in 2012 in response to Wen's comments.
Anhui Conch, China's biggest cement maker, gained 2.1 percent to close at 19.56 yuan, its highest finish since September 5.
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