China shares outlook - Lower after bank reserve requirement hike |
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Fri, 07 Sep 2007 02:06
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SHANGHAI (XFN-ASIA) - China shares are expected to open lower after the central bank announced a hike in the bank reserve requirement, the seventh such move this year, dealers said.The People's Bank of China said late yesterday that the reserve requirement will be raised by 0.5 percentage points, effective on Sept 25.Analysts said although the move to curb liquidity is not directly aimed at the capital markets, it may trigger a pullback after the main index hit record levels yesterday.Yesterday, the benchmark Shanghai Composite Index closed up 82.94 points or 1.56 pct at a new high of 5,393.66.Banking shares could be hit, with investors worrying that loan growth could slow as banks need to set aside more reserves.Yesterday, the Shanghai A-share Index was up 87.27 points or 1.56 pct at 5,663.96 on turnover of 164.33 bln yuan and the Shenzhen A-share Index was up 10.79 points or 0.70 pct at 1,561.88 on turnover of 84.52 bln yuan.(1 usd = 7.54 yuan)lilian.wu@xfn.com-xfnlw/xfntmCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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China B-shares close higher despite reserve requirement hike 