Latest News:  
Beijing   Sunny    24 / 12 ℃  City Forecast

English>>China Business

Added liquidity pushes local stocks higher

By Yu Xi (Global Times)

08:30, September 28, 2012

Stock markets in Shanghai and Shenzhen notched impressive gains Thursday after the People's Bank of China (PBC) channeled a record dose of liquidity into the country's banking system to elevate short-term liquidity stresses as the third quarter draws to a close.

The Shanghai Composite Index tacked on 52.15 points, or 2.60 percent, to close at 2,056.32; while the Shenzhen Component Index jumped 3.57 percent, or 292.90 points, to end at 8,486.27.

The indices opened at odds Thursday but picked up steam in early trading as the heavily weighted finance, real estate, chemical and shipping sectors advanced. Securities, coal, gold, Internet, banking, machinery and cement stocks climbed higher in the afternoon following the PBC's injection of liquidity into the money market during its normal open market operations (OMO).

In total, the central bank injected a net 365 billion yuan ($57.89 billion) into the market via OMO moves Tuesday and Thursday this week, marking the largest weekly injection in the PBC's history.

According to analysts, confidence in the market got a major boost after an official from the China Securities Regulatory Commission (CSRC) was cited in the China Securities Journal as saying that listed firms should soon finish systems to give out dividends to their investors.

The China Insurance Regulator Commission (CIRC) also announced late Wednesday that it had given nine investment firms approval to tap into the Chinese equity market on behalf of local insurers. Sinolink Securities Co climbed by the daily limit to 14.37 yuan. Haitong Securities Co edged up 6.32 percent to 9.42 yuan Thursday.

News we recommend:
Toll fee exemption boosts auto rentals GDP may slow for 9th quarter China-ASEAN Expo increases trade volume
Chinese firms ramp up presence in Thailand Chinese go online to buy latest iPhone Chinese winemakers demand anti-dumping
Logistics co-op needed in China, ASEAN  Global yuan use increases Steel producers face bleak months ahead

Email|Print|Comments(Editor:厉振羽、张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Amazing military photos: China's J-10 fighters

  2. North Korea's 'iPad' revealed

  3. New Deal to Boost Consumption

  4. Starbucks in Lingyin Temple triggers criticism

  5. Zhang Ziyi covers OK Jingcai magazine

  6. Spectacular scenery of dusk around world

Most Popular

Opinions

  1. Be vigilant against resurgence of militarism in Japan
  2. Easy times gone for foreign firms in China
  3. Noda gov't in hot water as LDP eyes comeback
  4. White paper makes watertight case for Diaoyu claim
  5. Intl firms should learn from Chinese counterparts
  6. Aircraft carrier brings timely morale boost
  7. Palestine faces difficulties amid Arab upheaval
  8. Theft of Diaoyu Islands risks China-Japan trade ties
  9. Japan defies post-war int'l order, China's goodwill
  10. Tokyo's stance on Diaoyu Islands 'unacceptable'

What's happening in China

Unknown object found in Uni-President milk tea

  1. Officials post their financial information online
  2. Views divided on bid to revise pension system
  3. New high-speed railway spurs debate over prices
  4. Chinese gov't units test-drive green autos
  5. Five detained after fatal Gansu mine accident

China Features

  1. Culture invasion? Starbucks kisses Buddha
  2. Public should enjoy more 'tourism benefits'
  3. Ancient villages face losing their souls
  4. Economic circles key to Sino-Japan relations
  5. How to pan for gold in cultural investment fever

PD Online Data

  1. Ministry of Water Resources
  2. Ministry of Railways
  3. People's Bank of China
  4. Ministry of Health
  5. Ministry of Culture