Latest News:  
Beijing   Sunny/Overcast    25 / 14   City Forecast

People's Daily Online>>China Business

More foreign funds to help enhance confidence in stock market

By Zhou Xiaoyuan (People's Daily Overseas Edition)

08:25, April 09, 2012

Edited and translated by People's Daily Online

With the authorization from the State Council, China Securities Regulatory Commission (CSRC), the People’s Bank of China and the State Administration of Foreign Exchange decided to bring in a new investment of 50 billion U.S. dollars under its Qualified Foreign Institutional Investors (QFII) system and a new investment of 50 billion yuan from RMB Qualified Foreign Institutional Investors (RQFII), according to CSRC on April 3. Analysts believe that this move, which will bring about 400 billion yuan to China's A-share market, will help strengthen the market confidence and is good news for China's A-share market.

A move to stabilize the market

In the current gloomy market situation, the supervision and management authority's move of increasing QFII investment is without doubt a positive signal for the market and its purpose of stabilizing the market is quite obvious. Li Daxiao, head of the Yingda Securities Company, said that it certainly is good news for the stock market and means a guiding spirit for stabilizing the market and the market confidence.

Foreign funds unlikely to make a “bottom fishing”

Since the current price level of the stock market is very low and blue-chip shares have relatively large investment values, will the move let foreign funds make a “bottom fishing”?

“The market is open and every one could buy in. I do not believe it is an opportunity for foreign funds to make a ‘bottom fishing’.” A renowned financial commentator Ye Tan believes that increasing investments from QFII and RQFII is not surprising. It is good news for the A-share market and will strengthen the market confidence, but it is not sure whether all the foreign funds will open positions after they come in.

Stock market may rebound

The A-share market has been declining since March, making many investors lose their confidences for the market. Will the QFII investment injected this time be able to positively affect the stock market? Hu Yuyue said that, in the short run, the new funds to be injected in, the reduced risks of economic hard-landing and inflation are good news for the stock market, and therefore, it is quite possible that the stock market will rebound after the Tomb-sweeping Day.

Read the Chinese version at http://paper.people.com.cn/rmrbhwb/html/2012-04/05/content_1031191.htm

Email|Print|Comments(Editor:张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Preschool in Guangxi's small village

  2. Seagulls attracted to residential community

  3. 2012 Vancouver Int'l Auto Show

  4. 6th Trilateral FMs' Meeting among China, ROK and Japan held

Most Popular

Opinions

  1. Asia-Pacific countries should promote free trade
  2. Anelka cannot save Chinese football
  3. Quick stop to good progress in N.Korea
  4. EU urged to do Chinese companies justice
  5. A hard-earned, favorable turn for Syria issue
  6. BRICS mulls joint bank
  7. How far away are we from nuclear terrorism?
  8. Benefits, not values, define BRICS unity
  9. China slams Japan's move over Diaoyu Islands
  10. More efforts needed for enhancing nuclear security

What's happening in China

Kite fair kicks off in China's Changchun

  1. Restaurant ordered to move out of Beijing temple
  2. Lai Changxing stands trial
  3. Largest-ever feathered dinosaur discovered
  4. Stable jet fuel supply system needed
  5. Hackers find direct line to info

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai