Monday, March 19, 2007

China announces 0.27 pct. rate hike / stocks up 3%!

another "baby step"... when you look how the markets react to all the tough talk and action from the chinese central bank and other officials it looks like china has lost "control". when i look at the stockmarket close to new highs after the brutal sell off just a few weeks ago it looks like the investors/traders have some kind of "amnesia"....
+ 83.96 3014.44 (intraday 3037) 52 week high 3049.77

noch ein minischritt....bei der marktreaktion die zudem noch die warnenden kommentare der offiziellen ausblendet kann man das gefühl haben das china die kontrolle verloren hat. das trifft besonders auf die akteure im aktienmarkt zu die wohl unter "amnesie" leiden......

BEIJING - China's central bank said Saturday it will raise key interest rates by more than a quarter percentage point in a move to cool torrid economic growth — the fourth increase in a year.

The 0.27 percentage point hike in one-year deposit and lending benchmark rates will go into effect Sunday, the People's Bank of China said.

That would raise lending rates to 6.39 percent and deposit rates to 2.79 percent, the bank said in a statement on its Web site.

The new rates will "promote the good, fast development of the national economy" by guiding an increase in credit and investment, preserving price stability and steady operation of the financial system, the statement said.

The rate hike is the latest in a series of measures China's leaders have taken to slow an economy they fear is running at an unsustainable pace. Four years of double-digit economic growth, largely driven by investment and exports, have left the financial system flush with cash.

In recent months Chinese leaders have been sounding the alarm about excessive lending, worried that it would push growth too fast and thereby accelerate recently rising inflation or touch off a debt crisis if imprudently made loans go bad.

Low deposit rates have also encouraged a rush by ordinary Chinese into the country's buoyant stock markets, exposing them to greater risks as a two-year bull market begins to flag.

does anybody remember the crash from a few weeks ago....after towdays 3% gain we are only 1% from new highs away.....

ereinnert sich noch irgendjemand an den crash vor einigen wochen......nach dem heutigen anstieg fehlt weniger als 1% zum neuen hoch......

i´m pretty sure that this "investor" looks happier today.....

bin mir ziemlich sicher das diese investor heute glücklicher aus der wäsche guckt.....

Premier Wen Jiabao, at a news conference Friday, ticked off a list of economic problems, citing excessive investment, credit and liquidity and swelling foreign exchange reserves.

"My mind is full of concerns," he told reporters.

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