BEIJING, Jan. 13 (Xinhua) -- Chinese equities saw
their sharpest dip in seven weeks on Wednesday after the central bank asked
lenders to set aside more reserves as record bank lending last year ignited
fears of inflation and asset bubbles.
The benchmark Shanghai Composite Index went down 3.09
percent, or 101.31 points, to close at 3,172.66 points.
Traders are seen at a stock trading hall
in Shenyang, capital of northeast China's Liaoning Province, Jan. 13,
2010. China's benchmark Shanghai Composite Index on the Shanghai Stock
Exchange closed at 3,172.66 points Wednesday, down 3.09 percent, from the
previous close. The Shenzhen Component Index on the Shenzhen Stock
Exchange closed at 13,016.56 points Wednesday, down 2.73 percent, from the
previous close. (Xinhua/Li Gang) Photo
Gallery>>>
The Shenzhen Component Index lost 2.73 percent, or
364.69 points, to close at 13,016.56 points.
Combined turnover expanded to 322.79 billion yuan
(47.69 billion U.S. dollars) from 294.3 billion yuan on the previous trading
day.
The People's Bank of China announced on Tuesday
evening to lift deposit reserve requirement ratio by 0.5 percentage points from
Jan. 18, the first such move since June 2008, which aimed to prevent possible
inflation and the recurrence of lending surge.
Banks led the fall as investors worried about
liquidity drain. Industrial and Commercial Bank of China (ICBC), the country's
largest commercial bank, sank 5 percent to 5.09 yuan. Bank of China fell 4.17
percent to 4.14 yuan.
A higher reserve ratio would help soak up excess
liquidity in the banking sector, but capital would remain abundant in the
market, said Wang Xiaoguang, analyst with the National Academy of Governance, a
government think-tank.
A trader is seen at a stock trading hall
in Shenyang, capital of northeast China's Liaoning Province, Jan. 13,
2010. China's benchmark Shanghai Composite Index on the Shanghai Stock
Exchange closed at 3,172.66 points Wednesday, down 3.09 percent, from the
previous close. The Shenzhen Component Index on the Shenzhen Stock
Exchange closed at 13,016.56 points Wednesday, down 2.73 percent, from the
previous close. (Xinhua/Li Gang) Photo
Gallery>>>
He said the new policy would stir up volatility in
the capital market in the short-term, but the long-term prospects would remain
positive as the real economy would keep growing.
Chinese lenders extended a record 9.21 trillion yuan
of loans in the first 11 months of last year, 5.06 trillion yuan more than the
corresponding period of 2008 and far exceeding the government target of 5
trillion yuan for the whole of 2009.
Realty firms dropped as the government reaffirmed its
crackdown on property speculation and pledged 6 million new affordable homes
this year.
China Vanke Co., the country's largest property
developer by market value, fell 2.43 percent to 10.04 yuan. Poly Real Estate
Group Co., the country's second largest developer, dipped 4.13 percent to 20.43
yuan.
BEIJING, Jan. 12 (Xinhua) -- The People's Bank of China
(PBOC), the central bank, announced on Tuesday to raise the deposit reserve
requirement ratio by 0.5 percentage points from Jan. 18 this year.
The ratio at small financial institutions such as the
rural credit cooperatives would remain unchanged to support the agriculture
sector, the PBOC said in a statement. Full story
BEIJING, Jan. 12 (Xinhua) -- China's securities regulator
on Tuesday approved Shanghai-based China Financial Futures Exchange (CFFEX) to
undertake stock index futures trade.
Specific launch time shall be made by the CFFEX in
line with the market situation and its preparation work following the approval
of certain contracts by the regulator, said China Securities Regulatory
Commission (CSRC) in a statement. Full story
BEIJING, Jan. 10 (Xinhua) -- The General Office of the
State Council, China's cabinet, Sunday issued a notice that required central
governmental departments and local governments to strengthen management,
stabilize market expectations and facilitate stable and sound development of the
real estate market. Full story
BEIJING, Jan. 10 (Xinhua) -- China's economy is forecast
to be in the fast lane in 2010, but mounting difficulties are still on the way
ahead, leading economists told Xinhua. Full story
