Banking News
- Shares sharply up on index futures
Date: 30-Oct-2007 Sources: (Shenzhen Daily)
EXPECTATIONS that the government may soon launch stock index futures and a likely imminent boost to liquidity offset concerns over fresh monetary tightening, lifting blue chips and driving shares sharply higher yesterday.
The Shanghai Composite Index ended up 2.8 percent at 5,748.00 in light trading. The Shenzhen Composite Index rose 1.9 percent to 1,403.86.
The Shanghai index now faces immediate psychological resistance at 5,800, with support around 5,600, traders said.
'Once liquidity becomes flush later in the week, institutional investors expect share prices to rise again, and they want to be in the game before prices are up,'said Chen Huiqin, an analyst at Huatai Securities.
A considerable amount of funds are expected to flow back into the banking system now that PetroChina has completed subscriptions for its A-share initial public offering. The subscriptions ended Friday after attracting a record 3.3 trillion yuan (US$440 billion) in funds.
PetroChina is raising as much as 66.8 billion yuan from the share sale that could be the largest domestic IPO to date
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