China shares outlook - Lower on bank reserve requirement hike |
|
|
|
Published
:
Mon, 15 Oct 2007 01:53
|
SHANGHAI (XFN-ASIA) - China shares are expected to open lower after the central bank raised banks' reserve requirements for the eighth time this year to curb liquidity, dealers said.The central bank said on Saturday it will raise the reserve requirement by 0.5 percentage to 13 pct, taking effect from Oct 25. Analysts estimate that the latest rise in the reserve requirement will freeze about 180 bln yuan in commercial banks.Last Friday, the benchmark Shanghai Composite Index closed down 9.97 points or 0.17 pct at 5,903.26 in volatile trading, with banks leading the decline.The latest tightening policy may slow down commercial banks' loan growth, but many market analysts believe the overall impact is limited as the market shrugged off recent reserve requirement hikes.The Communist Party's congress, held every five years, will open at 9 am today, with some investors suspecting that government funds will prevent large falls in share prices today.Shenzhen Development Bank Co Ltd (SZA 000001) could be in focus after it projected nine months net profit growth of 100-120 pct year-on-year.Suning Appliance Chain Store (Group) Co Ltd (SZA 002024) could be in favor after it upgraded a nine months net profit growth forecast to 100-110 pct, from 70-100 pct.(1 usd = 7.51 yuan)lilian.wu@xfn.com-xfnlw/xfntmCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
|
|
|
|
Print this Story
China raises bank reserve requirement 0.5 pct pts to 13 pct, 8th hike this year 