Tuesday, April 9, 2013

China stock index analysis april 2013

China stock index analysis march 2013: China’s stocks swung between gains and losses before the release of trade data for March. Property developers advanced the most in the Shanghai Composite (SHCOMP) Index, while drugmakers slumped.

The Shanghai Composite rose 0.2 percent to 2,229.59 at 9:52 a.m. local time, after falling as much as 0.2 percent. The index jumped the most in two weeks yesterday as a report showing decelerating inflation eased pressure on policy makers to tighten monetary policy. The CSI 300 added 0.1 percent to 2,492.75 today, while the Hang Seng China Enterprises Index advanced 0.5 percent.

“Stocks will fluctuate in the near term with a lack of volume to drive stocks strongly in either direction, Deng Wenyuan, an analyst at Soochow Securities Co., said by phone from Suzhou, near Shanghai. Recent data ‘‘show we are still headed towards a weak economy as there isn’t enough demand,’’ Deng said.

The Shanghai index has fallen 8.6 percent from a Feb. 6 high amid concern steps to cool property prices will drag on economic growth. Valuations have dropped to 9.1 times projected 12-month earnings, the lowest level since Dec. 13 and less than the seven-year average of 15.8, data compiled by Bloomberg show.

The Bloomberg China-US Equity Index (CH55BN) rose 1.3 percent in New York yesterday, with U.S.-traded shares of Yanzhou Coal Mining Co., Aluminum Corp. of China Ltd. and China Life Insurance Co. advancing the most since January.
Export Outlook

Exports probably climbed 11.7 percent last month from a year ago, according to the median estimate of 36 economists surveyed by Bloomberg. The data is scheduled to be released at 10 a.m. Overseas shipments rose 21.8 percent in February from a year ago, customs bureau data showed on March 8, beating the median estimate of 8.1 percent in a Bloomberg News survey.

Consumer prices rose 2.1 percent in March, the National Bureau of Statistics said yesterday, compared with the 2.5 percent median estimate of 38 analysts surveyed by Bloomberg.

China has no reason to ‘‘sharply’’ tighten monetary policy because inflation is ‘‘moderate’’ and growth is ‘‘relatively weak,’’ according to a front-page commentary in the China Securities Journal. Relatively weak demand in China may continue through the second quarter, the commentary said.

Fitch Ratings Ltd. cut China’s long-term local-currency debt rating, citing increasing risks to the country’s financial stability. Fitch lowered the rating to A+, its fifth-highest level, from AA-, the fourth-highest, the company said in an e- mailed statement yesterday. The company estimates total credit in China’s economy, including various forms of so-called shadow banking, may have reached 198 percent of gross domestic product at the end of 2012, up from 125 percent at end-2008.
Bird Flu

The Shanghai gauge’s trading volume was 31 percent lower than the 30-day average today, while 10-day volatility for the measure jumped to the highest level since January yesterday, according to data compiled by Bloomberg.

China’s government is pledging openness in divulging details of a deadly bird flu outbreak, saying it won’t repeat mistakes made during the SARS outbreak a decade ago that delayed response to the global contagion.

Any doctors who fail to disclose cases promptly and accurately will be prosecuted, Liang Wannian, an official at China’s National Health and Family Planning Commission, told reporters yesterday. The briefing came in response to an escalation in reported infections as the death toll rose to 9.

The iShares FTSE China 25 Index Fund (FXI), the largest Chinese exchange-traded fund in the U.S., jumped 1.7 percent in New York, the steepest one-day rally since March 20.

Yanzhou Coal, the nation’s fourth-largest miner of the fuel, advanced 4.7 percent to $12.59, rallying the most since Jan. 2. Aluminum Corp., China’s largest maker of the light metal, known as Chalco, also surged 4.7 percent to $9.63 in New York, the steepest gain since Jan. 10. Its ADRs, each representing 25 underlying shares, traded 3.1 percent above the Hong Kong stock, the highest premium this year.

ADRs of China Life, the nation’s biggest insurer, surged 3.8 percent to $39.10, rising the most in three months. For the latest updates PRESS CTR + D or visit Stock Market news Today

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