Text Version
RSS Feeds
Newsletter
Home Forum Photos Features Newsletter Archive Employment
About US Help Site Map
SEARCH   About US FAQ Site Map Site News
  SERVICES
  -Text Version
  -RSS Feeds
  -Newsletter
  -News Archive
  -Give us feedback
  -Voices of Readers
  -Online community
  -China Biz info
  What's new
 -
 -
Policies driving rapid growth of Chinese listed companies
+ -
17:33, August 28, 2009

 Comment  Tell A Friend
 Print Format  Save Article
Although the net profits of the 1,300-odd companies listed on the Shanghai and Shenzhen stock markets in their semi-annual fiscal reports showed a slight year-on-year decline, their second quarter net profits were considerably higher than those of the first quarter. Experts pointed out that this is closely related to policies boosting domestic demand, a proactive fiscal policy, and a moderately relaxed monetary policy.

Those policies, consumption stimulus measures in particular, have effectively guaranteed the stability of the listed companies' operating results.

According to a research report from China Securities Research Company, through direct promotion and indirect guidance, the policies have promoted infrastructure, resources and consumer industries to take the lead in recovery.

Of those, the automobile industry was the biggest beneficiary. As the first industry to launch a recovery plan, the automobile industry's inventory continued to drop. Its year-on-year growth rate and output to sales ratio have consistently risen since the plan was adopted. The industry's recovery growth was faster than expected. The most evident signs are the recovery of some automobile-related industries.

That is also the case for the textile industry. With the recovery of the industry's domestic sales and stabilizing exports, the production enthusiasm of textile enterprises is gradually increasing, there has been a surge of new orders and both the amount of raw materials purchased and purchasing prices have picked up.

Since the start of this year, the housing space sold and sales value both recovered, largely thanks to the promotion of policies and the release of rigid demand. At the same time, sufficient liquidity has also provided funding support to the housing market boom and therefore listed real estate companies have achieved marked growth.

According to a research report from CITIC Securities, the rapid increase in bank lending has played a key role in economic recovery. Substantial lending has provided increased funding support to the real economy, ensuring that China's economic system will not encounter insufficient liquidity in the process of coping with the global financial crisis.

That has shown that proactive fiscal policy and the moderately relaxed monetary policy have evidently done a good job in providing sufficient market liquidity.

By People's Daily Online



  Your Message:   Most Commented:
Being African among the curious Chinese
Australia's permission for Rebiya's visit chills bilateral ties
Three Beijingers jailed in US. Spies again?
Top five lake monsters in China
Why India is pursuing military strength?

|About Peopledaily.com.cn | Advertise on site | Contact us | Site map | Job offer|
Copyright by People's Daily Online, All Rights Reserved

http://english.people.com.cn/90001/6742735.pdf