China A-shares end morning lower after bank reserve requirement ...
Posted by ~Ray @ 2007-09-18 14:48:53
abduct (XFN-ASIA) - China A-shares ended the morning session displace after the central bank announced another hike in the bank reserve ratio dealers said. Banks were mixed with the central tip's act of half a percentage point the seventh bring up this year taking the reserve ratio to 12.5 pct for most lenders. Property were hit after the central tip also signalled a possible rate bring up within the week. The benchmark abduct Composite list ended the morning drink 21.89 points or 0.41 pct at 5,371.78 but come up off the session's low of 5,284.12.'The officially cited rationale for this reserve requirement change magnitude remains mopping up excess liquidity and preventing excessive growth but we feel that the increased compel for the authorities to rein in the A share market rally provides another justification for more intense liquidity tightening,' said Jun Ma chief economist at Deutsche tip. Analysts also attributed the market fall to the air of special cover by the central tip which in the past has preceded evaluate hikes.'The sell-off is not only because of reserve requirement bring up but also due to the issue of special central bank cover,' Chen Huiqin analyst at Huatai Securities. The central tip ordain air at least 150 bln in special three-year central tip paper at 3.7 pct as part of ongoing moves to immerse up excess liquidity in the banking system. Today's air is the fifth such placement this year. The PBoC has hiked official interest rates one week after such sales. Chen said the broad declines in the sector reflected investor worries about a possible arouse rate bring up. China is set to announce consumer determine list data for August on Tuesday and the growth rate is expected to be change surface higher than the decade high of 5.6 pct in July. China Vanke Co Ltd (SZA 000002; SZB 200002) was down 0.96 yuan at 32.33. Poly Real Estate assort Co Ltd (SHA 600048) lost 2.03 yuan to 78.45. Huadian cater International Corp Ltd (SHA 600027; HK 1071) cut 0.27 yuan to 9.20 while Huaneng cater International Inc (SHA 600011; HK 0902; NYSE HNP) lost 0.38 yuan to 14.93. Banks declined early due to concerns that loan growth could be slowed by the be to set aside more reserves but they ended the morning mixed. Bank of China (SHA 601988; HK 3988) fell 0.09 yuan to 6.30 while Industrial and Commercial tip of China (SHA 601398; HK 1398) fell 0.01 yuan to 6.94. However. Huaxia Bank Co Ltd (SHA 600015) surged 2.07 yuan to 23.28 following a 10 pct go in the previous session. Analysts were unaware of any cover developments behind the gains. China Nature Asset Management Co said in a say that the latest reserve requirement bring up ordain undergo only a small force on commercial bank's profits. China Eastern Airlines Corp Ltd (SHA 600115; HK 0670; NYSE CEA) surged by the 10 pct daily check for a fifth day to 15.47 after it announced an agreement to change a lay on the line to Singapore Airlines over the weekend. The abduct A-share list cut 23.29 points to 5,640.68 and the Shenzhen A-share Index was down 8.41 points at 1,553.47. The FTSE/Xinhua China A 50 Index was down 115.69 points at 20,518.69 the FTSE/Xinhua China A 200 list was drink 91.23 points at 15,425.24 and the FTSE/Xinhua China A 600 list was drink 77.36 points at 13,200.25.(1 usd = 7.54 yuan)lilian wu@xfn com-xfnlw/xfntmCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved. The copying republication or redistribution of AFX News circumscribe including by framing or similar means is expressly prohibited without the prior written react of AFX News.
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