China A-shares end morning firmer; banks rebound from impact of reserve hike |
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Tue, 31 Jul 2007 05:14
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SHANGHAI (XFN-ASIA) - China A-shares ended the morning session slightly higher, with heavyweight banks bouncing back on bargain-hunting from earlier lows, which reflected initial reaction to the central bank's announcement of a further monetary tightening measure with a hike in banks' reserve requirement.Heavyweight trimmed their losses, which earlier reached as much as 1.39 pct.The central bank announced late yesterday a hike in banks' reserve requirement ratio by 50 basis points, citing a need to curb rapid credit growth and cool an overheating economy.It was the sixth hike this year, and the move came only 10 days after the central bank raised interest rates on July 20.The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, ended the session up 3.32 points or 0.07 pct at 4,444.09.The Shanghai A-share Index rose 3.22 points to 4,661.08, and the Shenzhen A-share Index was up 4.13 points at 1,336.63.The FTSE/Xinhua China A 50 Index was up 105.45 points at 16,817.58. The FTSE/Xinhua China A 200 Index rose 66.94 points to 12,764.60 and the FTSE/Xinhua China A 600 Index gained 33.01 points to 11,023.21.(1 usd = 7.56 yuan)lilian.wu@xfn.comlw/net-xfnlw/xfnntCOPYRIGHTCopyright 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 