综合一区欧美国产,99国产麻豆免费精品,九九精品黄色录像,亚洲激情青青草,久久亚洲熟妇熟,中文字幕av在线播放,国产一区二区卡,九九久久国产精品,久久精品视频免费

Economy

Markets

Industries

Insights

Reports

Events

Rate cut lifts stocks by 1.05%

By Zhou Yan (China Daily)
Updated: 2008-11-28 10:35

The mainland stock market euphoria on the central bank's aggressive rate cuts waned yesterday in late trade, after the index surged over 6 percent in the opening session, as concerns for the wilting economy and sagging corporate earnings mounted.

The benchmark Shanghai Composite Index edged up 1.05 percent, or 19.98 points, to end at 1917.86 yesterday, with gainers outnumbering losers 672 to 169. Turnover on the bourse more than doubled to 86.46 billion yuan from Wednesday's 42.3 billion yuan.

The smaller Shenzhen Component Index jumped 2.29 percent, or 149.38 points to finish at 6683.24.

China's central bank slashed the benchmark 1-year lending and deposit rates by 1.08 percentage points on Wednesday, the highest monthly rate cuts since 1998.

The reserve requirement ratio for six big commercial lenders and other smaller banks will also be trimmed by 1 percentage point and 2 percentage points respectively.

"This reflects the authorities' determination to ensure sufficient liquidity to support growth," said Ken Peng, a Citigroup economist in Shanghai, adding recent news on fiscal efforts failed to rekindle equity market performance.

The rate cuts may help mitigate Chinese corporation's financing burdens, shoring up investors' confidence in the market, said analysts.

The cuts may boost China's stock market valuation as much as 20 percent, said Teng Tai, chief economist at China Galaxy Securities. But profit taking during afternoon trading led to market gains narrowing significantly after the early surge.

"The absence of further monetary stimulus from the government in the short-term and the reopening for initial public offerings give the market no additional upward impetus," said Zhang Fan, a Tebon Securities analyst, adding massive monetary moves stemming from the economic slowdown, will not have any long-term positive impact on the market because corporate earnings will remain lean under gloomy conditions.

Almost all property stocks rallied, as the monetary measures will help cut the high debt-to-equity ratio for capital-intensive realty companies and ease loan pressure on home buyers.

Vanke, China's largest real estate developer, jumped 3.09 percent to close at 7.01 yuan.