英文: China market-boosting measures seen offset by faster fund-raising - analyst 2 x+ @# L/ B3 ]% e- U( `" B V0 ]
The motives behind apparent government attempts to stimulate the domestic stock market remain obscure, but it is clear that the government is not just aiming to generate a short-term speculative rally, DBS Securities analyst Wu Jian said. 1 a9 n5 ~/ [3 W, Y, D" j: M$ A# D+ T
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Consequently, it is likely that the recent implementation of fresh market-boosting measures will quickly be followed by a marked acceleration in the pace of fund-raising, Wu said.
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* k# n1 Y7 `5 ^" i7 zShare prices in both Shanghai and Shenzhen are sharply higher today on further signs that the government is stepping up its efforts to boost the market. ' ?- e. W; ]# K3 |' Z7 V* ^) o
At 2.21 pm, the Shanghai A-share index was up 145.84 points to 1,776.86, while the B-share index was up 13.44 points at 155.19. The Shenzhen A-share sub-index was up 320.26 points at 3,839.30, while the B-share sub-index was up 132.54 points at 1,460.46.
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- Q' I: _; T& ZShares gained strongly on Friday following publication of an editorial in the official China Securities Journal which was apparently aimed at boosting investor confidence.
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This has since been followed by the publication of a similar editorial on Saturday, as well as the publication of reports that the government has given up a plan to sell off state shares via the stock market and the publication of provisional regulations raising the threshold for listed companies seeking to launch additional share offers.
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All of these actions appeared to confirm rumours that the government is implementing a ten-point package of market-boosting measures.
* q, D* j: s" {$ [/ g4 l, i S# QWu said he believes retail investors have accounted for most of the buying since Friday, while institutions are likely to have been more sceptical about the government's motives.
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) u3 f/ p' ]3 v& {" |He said the government has effectively made a 180-degree turn on its policy towards the market, and although there is widespread speculation that the motive is to prevent a market correction in the run-up to the Communist Party's 16th Congress -- due sometime this autumn -- the actual motive may be to boost the market's ability to channel funds to cash-strapped state firms. 9 K4 {( I ~- ~$ ]5 z7 W9 w
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On one hand, the government is keen for the market to provide funds to state firms in order to help these enterprises "get out of difficulties".
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On the other, the government is keen for securities investors to take over burdens currently being carried by the state commercial banks.
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+ U8 `) {# C+ h+ zThe government wants to achieve a rapid reduction in the commercial banks' non-performing loans, and an acceleration in the pace of share offers will help the country reach this target. # J- k4 b6 U9 x4 B
' [( ~: H# i8 e* J, g, |Wu noted in particular that several Hong Kong-listed companies, including PetroChina, China Unicom and China Southern Airlines are slated to launch major A-share offers in the second half of the year.
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He said institutions are likely to have realised that the government's motive is not to create an environment for speculative gains. 5 [ m0 D) f" m. W1 {
Although share prices are likely to trend higher, shares are unlikely to see the kind of overheating that usually follows major government attempts to ramp up share prices, he said.. |