Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200812/20081219/article_385035.htm
Financial rebound sees stock index rise
Created: 2008-12-19
Author:Pan Xiaoyi
SHANGHAI'S key stock index rose nearly 2 percent yesterday thanks to a rebound of financial shares in the afternoon on speculation mortgage loans will be boosted by the country's property stimulus package.
The benchmark index lost 0.66 percent at the morning close but rallies among lenders pushed the index up later.
The Shanghai Composite Index gained 1.97 percent, or 38.88 points, to 2,015.69 points, after reaching an intraday low of 1,958.97.
Gainers outnumbered losers 739 to 112 while 27 remained unchanged. Turnover shrank slightly to 64.9 billion yuan (US$9.54 billion), compared with 68.3 billion the previous day.
"Lenders and real estate developers were very closely related. The stimulus package, which aimed at propelling the macro-economy, will be expected to exert huge active impacts on lenders," said Wang Xingjun, an analyst from Donghai Securities Co.
China will lower mortgage rates on purchases of second apartments and reduce waiting period for tax-free re-sales in a bid to boost the property market.
Experts also estimate that new credit loans next year will reach 5 trillion yuan to meet the target of 17 percent growth of M2 next year, the broadest measure of money supply.
Shanghai Pudong Development Bank was up 7.46 percent to 14.83 yuan. China Merchants Bank rose 5.81 percent to 13.66 yuan.
The benchmark index lost 0.66 percent at the morning close but rallies among lenders pushed the index up later.
The Shanghai Composite Index gained 1.97 percent, or 38.88 points, to 2,015.69 points, after reaching an intraday low of 1,958.97.
Gainers outnumbered losers 739 to 112 while 27 remained unchanged. Turnover shrank slightly to 64.9 billion yuan (US$9.54 billion), compared with 68.3 billion the previous day.
"Lenders and real estate developers were very closely related. The stimulus package, which aimed at propelling the macro-economy, will be expected to exert huge active impacts on lenders," said Wang Xingjun, an analyst from Donghai Securities Co.
China will lower mortgage rates on purchases of second apartments and reduce waiting period for tax-free re-sales in a bid to boost the property market.
Experts also estimate that new credit loans next year will reach 5 trillion yuan to meet the target of 17 percent growth of M2 next year, the broadest measure of money supply.
Shanghai Pudong Development Bank was up 7.46 percent to 14.83 yuan. China Merchants Bank rose 5.81 percent to 13.66 yuan.
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