China shares higher, well off lows; banks hit after reserve ratio hike |
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Tue, 31 Jul 2007 03:31
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SHANGHAI (XFN-ASIA) - China shares rose, moving well off their opening lows in early trade after the central bank announced a 50 basis point hike in the bank reserve requirement, dealers said.At 9:48 am, the Shanghai Composite Index rose 8.45 points or 0.19 pct at 4,449.22, after dropping as much as 22.29 points early on.Banks led the decline after the latest tightening move. Analysts said the higher reserve requirement will affect their loan growth as they will be obliged to place additional funds of about 185 bln yuan with the central bank.Industrial Bank Co Ltd (SHA 601166) lost 1.99 yuan to 40.81, while Bank of Nanjing Co Ltd (SHA 601009) shed 0.74 yuan to 23.22.Energy and steelmakers were in favor on continued expectations of strong interim results.Datong Coal Industry Co Ltd (SHA 601001) added 2.63 yuan to 37.95, while Laiwu Steel Corp (SHA 600102) rose 1.42 yuan to 18.90.(1 usd = 7.57 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 central bank hikes reserve requirement ratio by 50 basis points-UPDATE 