Thursday, April 05, 2007

China Raises Banks' Reserves Sixth Time in 10 Months

another baby step. but nevertheless a step. feels like they are doing something every 2 weeks now (see label)..... so far with no effects....

noch ein babyschritt. aber immerhin ein weiterer schritt in die richtige bekommt das gefühl das die alle zwei wochen was unternehmen (siehe label).....bisher allerdings ohne jeglichen erfolg.....

China has ordered commercial banks to set aside more money as reserves for the sixth time in 10 months, in an aim to slow inflating prices and curb investments in the world's fastest-growing major economy.

The People's Bank of China raised the reserve ratio by another 0.5 percentage point to 10.5 percent, starting on April 16, the central bank said today in a statement on its Web site.

The central bank ``will continue to carry out prudent monetary policies, use multiple tools to strengthen liquidity controls to maintain liquidity at a moderate level and to prevent money supply and lending from growing too rapidly,'' according to today's statement.

Central bank Governor Zhou Xiaochuan is concerned that cash from China's record $177.5 billion trade surplus is stoking excess investment, raising the risk of accelerating inflation and boom-and-bust cycles in asset prices. The People's Bank of China last month raised interest rates for the first time in 2007, after two increases in 2006.

China's economy, the world's fourth largest, expanded at the fastest pace in 11 years in 2006. The previous increase in bank reserve ratios took effect on Feb. 25. The People's Bank lifted the benchmark one-year lending rate to 6.39 percent, the highest in almost eight years, from 6.12 percent on March 18.

The stock market has reached record highs this year, and also had the biggest drop in a decade,

underscoring government concerns about boom-and-bust cycles fueled by the cash from a trade gap that last year widened to $177.5 billion.

The trade surplus surged ninefold in February from a year earlier to $23.8 billion, the second-highest on record. Inflation accelerated to 2.7 percent from 2.2 percent in January. The central bank's target for the year is a rise in consumer prices of within 3 percent.


BEIJING (XFN-ASIA) - The People's Bank of China drained 90 bln yuan from the banking system via the sale of three-year bonds and three-month bank bills in today's open market operations.

The bank said in a statement carried on its website that the yield for the 40 bln yuan worth of three-year central bank bonds sold was 3.28 pct, unchanged from the rate set at last Thursday's sale.

>can anybody see the 10% one day crash......all this action the last weeks and days didn´t stop the shanghai index from gaining over 18% in just a month since that "small" dip.......

>kann hier nich jemnad den 10% einbruch sehen......die ganzen maßnahmen der notenbanken scheinen zu verpuffen. der index hat seit seinem kleinen einbruch binnen eines monates mal eben satte 18% hinzugewonnen

It also sold 50 bln yuan worth of three-month central bank bills at a yield of 2.6648 pct, also unchanged from the rate at the previous sale.

thanks to floss

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Blogger Lauriston said...

I am told the Chinese love to gamble and speculate, so I don't know what the government there can do to stop that. It will take a massive massive move against peoples' positions before the party comes to it's senses. Sehr interessanter Bericht!

8:13 AM  
Blogger jmf said...

thanks lauriston

i´m more and more speechless about most of the markt action around the globe.

gold locks better every day :-)

9:16 AM  
Anonymous Anonymous said...

Who is the man(woman?) in the first photograph?


4:45 PM  
Blogger jmf said...

have taken it from the web the day they covered the 10% crash in shanghai.

1:14 AM  

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