SHANGHAI: China's key stock index opened up slightly on Monday, Dec 13 after data showed Chinese inflation flew past forecasts to a 28-month high and the central bank raised lenders' requirements for the third time in a month.
The market had been worried about a rise in interest rates, thus the increase in bank reserve requirement ratios (RRR) late on Friday was greeted with some relief.
The Shanghai Composite Index was at 2,850.3 points, after closing flat last week. Investors had been expecting the central bank to raise interest rates or reserve requirements over the weekend, with many pulling cash out of the market to sit on the sidelines.
Chinese inflation data, published on Saturday, should give the government confidence to intensify its tightening with robust economic data pointing to impressive growth momentum.
Analysts expect the index to continue rangebound trading around the 250-day moving average, now at 2,864 points, with strong corporate earnings and economic growth, balancing fears of further tightening measures. - Reuters
The market had been worried about a rise in interest rates, thus the increase in bank reserve requirement ratios (RRR) late on Friday was greeted with some relief.
The Shanghai Composite Index was at 2,850.3 points, after closing flat last week. Investors had been expecting the central bank to raise interest rates or reserve requirements over the weekend, with many pulling cash out of the market to sit on the sidelines.
Chinese inflation data, published on Saturday, should give the government confidence to intensify its tightening with robust economic data pointing to impressive growth momentum.
Analysts expect the index to continue rangebound trading around the 250-day moving average, now at 2,864 points, with strong corporate earnings and economic growth, balancing fears of further tightening measures. - Reuters
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