Wednesday, April 19, 2017

China got to bottom and then swim

China got to the bottom and then swim up?

Analysts and China
European countries have started to talk about
that the Chinese stock market
It bottomed when greatly fell,
and now he has finally made a break
and at the end of trading on Thursday, he has already succeeded
fall bold growth: index of Shanghai
Composite rose today by 5.4% by the end of
auction and returned to a level above 3000
points, which experts call
critical. Chinese regulator all
scrambles to save his stock
market: this week he had already spent
double easing of monetary policy,
to lower interest rates and reserve requirements,
and then pouring into the market large volumes
fresh liquidity. By the way, the recent
injection of liquidity was the
scale with November 2012.


Of course, it is best to
feel financial giants -
Bank Of China and China Citic Bank. experts
said that the regulator incentives
benefit more just share large
companies, because the money goes to the banks,
and they prefer to lend
state-owned, not private enterprises.
Thus, stocks rose on Thursday
Industrial Commercial Bank of China, Agricultural Bank of China
and Bank Of Communications. Rose and paper
PetroChina, which have the largest weight in the
index Shanghai Composite.


However, no
stabilization in the Chinese market
actually there now because the indices
very much fallen in recent years,
and therefore have to rebound
It happens, especially after the next
actions of local authorities. However, some
economists say that the market has already felt
bottom, and also in the country there are many
rich, who may well have to start
make cautious buying.


In addition, China
recently devalued the yuan yesterday
it turned out that two weeks regulator
sold US Treasuries
bonds worth more than $ 100 billion to
to support the yuan in the currency market. AND
yet, most likely, the PBOC
continue further "burning"
foreign exchange reserves to stabilize
Yuan and its market as a whole. So to talk about "bottom" and stabilization is still too early.



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