China stocks Rise most in
three weeks as Machinery shares surge
China's stocks rebounded from the biggest two days loss in 18 months as its construction and bank shares gained after the government pledged to support machinery exports. This makes clear, that china government is taking steps to boost lending and economy as well.
Wu Kan, a fund manager at Dragon Life insurance co. Said “ Machinery companies are the favourite ones for investors now as the government looks like its starting to implementing specific policies for Chinese companies to go overseas”.
Percentage rise in
INDEX:
Savy Heavy Industries co.(600031) and zoomlion Heavy industries of science and technology co. Both raised to 10%
The state council promised to “guarantee financing for exporting large equipments and encourage lending by commercial banks for equipment manufacturing”.
China construction bank crop. led gains for lenders, rising 6.8%
The shanghai composite Index(SHCOMP) surged 3.4% to 3,072.54 at the close, this is the biggest gain since December 4. I t had lost 5% over the past two days and its expecting the government will take appropriate action to keep the rapid gain in equity price.
The CSI 300 index advanced 3.3%
Hong Kong's market remains closed today and tomorrow for Christmas. According to Bloomberg, Chinese-US equity Index, the measure of the most traded US-China companies, retreated 0.6% in New York yesterday.
Trading volume in Shanghai composite were 10% below the 30-day average today, according to data complied by Bloomberg.
The Index has risen 45% this year and hopes the central bank will extend interest rate cut and as investors boosted stock purchase with borrowed money.
Gauge Value:
The Shnaghai gauge is valued to 11.6 times in 12 month projected earning, near the highest level in the past three years according to data complied by bloomberg. The outstanding value of margin dropped for a second time yesterday to 667.2 billion Yuan ($107.3 billion). It reached a record of 670.6 billion Yuan on December 22.
In CSI 300, Gauges of financial and industrial stocks adavanced 4.4% among 10 industries group.
Bank of Ningbo co. Surged 5.9%
Industrial and commercial bank of China Ltd. and bank of China Ltd raised atleast 3%
Huaxia bank co.(600015) raised 10%
Overseas Push:
The people's bank of China made the reserve requirement ratio at zero for deposits from non-bank financial institution. The PBOC told 24 financial institutions in a meeting yesterday that “deposits from and loans to non-bank financial institutions will be included in the calculation for loan to deposit ratios”.
LI kequiang posted on a government website yesterday, “China will financially support companies expanding overseas to raise the international competitiveness of domestically made products”.
Savy Heavy industry gained to the highest close since April 2013. The company said “its unit signed a contract worth $178.8 million to sell engineering products and parts to the trade company in Venezuela”.
XCMG construction Machinery Co. Surged by the 10% daily limit and citic Heavy industries co. Gained over 6%
