1. The China Securities Regulatory Commission on Friday issued a directive permitting qualified foreign institutional investors (QFIIs) to trade index futures in China.
According to the directive, QFIIs may only engage in hedging in trading index futures. They are not allowed to float derivatives abroad based on China's index futures.
QFIIs that plan to trade index futures should submit their new investment plans to the CSRC and the State Administration of Foreign Exchange (SAFE).
Comment: analysts pointed out that QFIIs will be prudent on index futures trading at the early stage. The small capital scale is believed to put limited influence on the stock market.
2. The China Securities Regulatory Commission (CSRC) on Friday put in place rules to regulate what investments securities companies may make on their own accounts.
Under the rules, securities companies may invest on their own accounts in securities listed on domestic exchanges, some securities traded on the domestic Interbank market, and securities via over-the-counter trading.
However, the rules allow securities companies to establish subsidiaries to invest in other financial products not listed above. The establishment of such subsidiaries must be submitted to the CSRC for approval.
The rules prohibit securities companies from providing financing or guarantees for their subsidiaries investing in other financial products. Comment: it is likely to stimulate listed securities firms as the new rule has expanded their business scope and broaden their profitable channels.
3. China's textile and garment export growth is expected to drop from 23.59 percent in 2010 to about 15 percent this year affected by rapid rise of cost, appreciation pressure of RMB, tightening monetary policy as well as possible change of export rebate policy, Wang Qianjin, a senior analyst with webtex.cn, said.
Comment: listed textile firms are believed to stay under pressure on the possible retreat in export.
4. China will cut the high-speed railway infrastructure investment by 100 billion yuan this year, an official of China's Ministry of Railways (MOR) said.
The MOR announced on Friday that its total investment this year will reach 745.5 billion yuan (about 115 billion U.S. dollars), with 600 billion yuan going toward infrastructure construction, according to ministry spokesperson Wang Yongping. The original plan for infrastructure construction this year is 700 billion yuan.
The official meanwhile noted that the high-speed railway projects under construction will not be suspended.
Comment: the remark of the MOR official is believed to provide support to high-speed railway stocks as the investment cut of 100 billion yuan is lower than market expected. It will help to ease market concerns on sharp decline of investment to the high-speed railway construction in China.
5. China's spring crop sowing has by far completed 60 percent, much faster than the same time of last year, according to a report published on the website of the Ministry of Agriculture (MOA) on Friday.
The report said this year's spring ploughing started earlier with sufficient agricultural materials and good foundation, and farmers' planting intention for the whole year is larger than the previous year.
According to the MOC, some 805 million mu (53.69 million hectares) of crops have been ploughed by May 6, 61.7 percent of the whole amount, 4.9 percentage points faster than the last year.
Comment: it will send information to the market that the supply of agriculture products will be sufficient. It will ease market worries about rising food prices and further ease China's inflation pressure, cheering up stock investors. For the latest updates PRESS CTR + D or visit Stock Market news Today
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