Latest News:  
Beijing   Sunny/Cloudy    33 / 24 ℃  City Forecast

English>>China Business

July inflation slowdown helps mainland shares record win

By Yu Xi  (Global Times)

08:46, August 10, 2012

Stock markets in Shanghai and Shenzhen posted victories Thursday in large part due to hopes that a drop in consumer inflation in July would pave the way for the government to loosen its monetary policy in the weeks ahead.

The Shanghai Composite Index climbed 13.11 points, or 0.61 percent, to close at 2,174.10; while the Shenzhen Component Index edged up 1.38 percent, or 126.87 points, to finish at 9,337.54.

Both benchmarks opened lower Thursday and a sharp drop in banking stocks weighed on the indices at the start of the trading day. Later gains in brewing, real estate and medical stocks, combined with a renewed surge in investor confidence thanks to the release of inflation data that largely met the market's expectations, helped both benchmarks close out afternoon trading in the black.

According to data issued Thursday by the National Bureau of Statistics, China's consumer price index (CPI) dropped to 1.8 percent in July, the lowest level in 30 months. With the inflation rate below 2 percent, many investors expect China's central bank to roll out fresh stimulus measures later this month aimed at reviving the anemic domestic economy, say analysts.

Chinese property developers posted strong gains largely on hopes that the real estate industry would soon be receiving policy support, as an inspection ordered by the State Council of local property markets wrapped up Monday, according to a report Thursday by the 21st Century Business Herald.

Poly Real Estate Group added 1.58 percent to 10.92 yuan ($1.71) on the news, while China Merchant Real Estate Group added 1.12 percent to 21.58 yuan.

News we recommend:
Has the bear outstayed his welcome? Steel profits continue to suffer China has entered an era of low consumer prices
Lamborghini sees 20-30% rise in supercar sales Ad campaigns are competing hard in London Major lenders broaden horizons and flex financial muscles
US takes trade remedy actions against China  Chinese prefer foreign brands Mascot maker feels pinch of rising labor costs

Email|Print|Comments(Editor:李倩、厉振羽)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Officers and men conduct training

  2. Madagascar: Island of bizarre

  3. Volcano erupts on New Zealand's North Island

  4. Has the bear outstayed his welcome?

  5. Chinese celebrate "Liqiu" with food

  6. Wall-E brought to life by U.S. robot maker

Most Popular

Opinions

  1. Fearing others' rise offers path to eventual doom
  2. Ocean-lapped Japan wary of China's power
  3. Editorial: Reducing grain loss
  4. Who compels Annan to resign?
  5. How can Japan get rid of sense of frustration?
  6. Review on China's economic situation in first half
  7. Gaza Strip biggest loser of insecurity in Sinai
  8. Editorial: Test for Budget Law
  9. Why U.S. veteran go on shooting rampage?
  10. Officials, you are not above the people

What's happening in China

Dating websites lack supervision and management

  1. Planes bump at Shanghai airpor
  2. Gov't project helps villagers fight bone disease
  3. Contact point set up in Golden Triangle waters
  4. Illegal kidney trade trial opens in central China
  5. Thunderstorm forces flights to change course

China Features

  1. Boxing in China II: A Tale of Two Decades
  2. Fortune 500 Chinese companies not strong
  3. Why Hollywood favores China's actresses?
  4. Dongfeng Honda to recall 76,000 CR-Vs
  5. How to protect yourself during heavy rainstorms?

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