China shares higher in early trade, banks recover from opening weakness |
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Mon, 15 Oct 2007 03:05
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SHANGHAI (XFN-ASIA) - China shares were higher in early trade as banks recovered from opening losses after the central bank raised banks' reserve requirements for the eighth time this year, 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.At 9:44 am, the benchmark Shanghai Composite Index rose 52.11 points or 0.88 pct to 5,95.38, after opening up 31.51.Industrial and Commercial Bank of China (SHA 601398; HK 1398) added 0.13 yuan to 7.78, and Bank of Communications Co Ltd (SHA 601328; HK 3328) gained 0.45 yuan to 15.00.Dealers noted that the bank declines last Friday factored in some of the negative impact from the tightening move.CITIC Securities Co Ltd (SHA 600030) rose 5.54 yuan to 109.89, after it received approval from the China Securities Regulatory Commission (CSRC) to invest overseas under the government's Qualified Domestic Institutional Investor (QDII) scheme.The Communist Party's congress, held every five years, opened at 9 am today. President Hu Jintao is currently delivering his speech, which touched on improving the structure of China's capital markets, among others.(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.
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Hong Kong shares turn higher led by China financials; index hits new high 