| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Nov.21 - A continuing massive inflow of domestic and foreign funds Tuesday pushed the Shanghai stock index to a 5-year high with much of the buying concentrated in banks and blue chips.
The benchmark Shanghai Composite Index, which had seen five consecutive1 days of gains, breached2 the 2000-point psychological barrier and jumped 2.3 per cent to close at 2017.28, the highest since July 27, 2001. The index is up about 72 per cent since the beginning of this year, making China one of the world's best-performing equities3 markets. The rally gathered steam after the government initiated4 regulatory and structural5 reforms to convert US$250 billion worth of State-owned non-tradable shares to tradable ones. The market surge is also a reflection of China's fast-growing economy and wide expectations of the yuan's further appreciation6. These factors have combined to suck in a continuous inflow of investment funds from institutions, analysts8 said. The exchange rate of the renminbi against the US dollar hit a new high last Monday, with the central parity9 rate at 7.8644. The rate was 7.869 yesterday. Figures from Shanghai-based Wind Data show that since September, 22 mutual10 funds have raised 80.6 billion yuan (US$10.2 billion) to invest in the market. In the past two weeks alone, eight mutual funds raised a combined 30 billion yuan (US$3.8 billion), indicating a new wave of capital for equities. It predicted that by the end of this year, more than 100 billion yuan of (US$12.7 billion) new capital would flow into the market. Meanwhile, the central government has quickened the pace of allowing more foreign capital into the stock market. The government granted US$400 million in new quotas12 in the past week to qualified13 foreign institutional investors14 (QFIIs), bringing the overall quota11 to US$8.645 billion. "Those new funds are mainly invested in bank shares and other blue chips, which have steady and continual growing potential," said Zhang Qi, an analyst7 with Haitong Securities. China Merchants Bank, which gained 1.1 per cent on Friday, jumped 6.6 per cent to 13.50 yuan (US$1.7). Industrial & Commercial Bank of China, the country's largest lender, climbed 3.2 per cent to 3.92 yuan (49.6 US cents) after gaining 9.8 per cent last week. "Increasing confidence in the country's economy has boosted bank shares, which directly reflects the country's macro-economic situation," said Dorris Chen, senior analyst with BNP Paribas. "Also, expectations of an appreciation of the Chinese currency are helping15 yuan-denominated shares to rise," he said. Another heavyweight blue chip, Sinopec Corp, Asia's largest oil refiner, surged 7.8 per cent to 7.87 yuan (99.6 US cents) following Nymex crude's fall to a 17-month low at Friday's close. Zhang Yichi, who manages a mutual stock fund that sold out within two days, believes the market would remain bullish next month. He predicted that the return for mutual fund investors next year will reach up to 25 to 30 per cent. The market capitalization of the Shanghai Stock Exchange crossed 5,000 billion yuan (US$633 billion) on November 15.
点击  收听单词发音
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TAG标签：
- 发表评论
-
- 最新评论 进入详细评论页>>
