BIZCHINA / Market Movements
HK shares close lower on profit-taking
(Xinhua)
Updated: 2007-06-26 08:58
Strong profit-taking pressur
BIZCHINA / Center
China's 6 financial markets taking shape
By Dai Yan (chinadaily.com.cn)
Updated: 2007-06-25 14:09
With 20 years of development, the bond, interbank, stock, foreign
exchange, futures and gold markets have become six major markets of the
Chinese financial industry, and a blueprint for their future development
has been mapped out, according to a recent seminar.
The Chinese currency markets including interbank, repurchase and bill
markets, the capital market composed of bond and stock markets, as well
as the foreign exchange, gold, futures and insurance markets are all in
shape.
The Chinese bond market will be based on the domestic bond market and
become an international renminbi bond market. Now it has formed a
structure with the interbank market as its main body and the exchange
market as a complement. The bond balance in China reached 8.78 trillion
yuan (US$1.12 trillion) at the end of 2006, accounting for 2.2 percent of
the global bond market and standing eighth worldwide.
Transactions in the interbank market totaled 2.27 trillion yuan during
the first five months of 2007, almost even compared with last year's
total. The Interbank Offered Rates, especially Shanghai Interbank Offered
Rate, have succeeded in reflecting short-term market liquidity changes,
macro economic policy, capital market and public expectations.
The central bank will expand participant scope in the interbank market
and invite more types of eligible financial institutions in the
competition, said Zhou Rongfang, deputy director of Financial Market
Management Department under Shanghai branch of the central bank.
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First mainland futures set foot in HK
The Shanghai Stock Exchange took the ninth place worldwide by market
value in April, said Liu Xiaodong, deputy general manager of the Shanghai
Stock Exchange. According to statistics, the combined market value of the
Shanghai and Shenzhen stock exchanges was US$1.15 trillion at the end of
2006, accounting for 2.26 percent of the world's total.
The Chinese foreign exchange market is increasing foreign exchange
varieties, and will continue improving transaction rules, said Wang
Yungui, deputy director of Balance of Payments Department under the State
Administration of Foreign Exchange. The foreign exchange market has also
introduced over-the-counter transactions and market maker rules.
Shanghai has become one of the important copper futures pricing centers
in the world, with its copper futures transactions ranking third.
Shanghai also leads the world in rubber futures transactions and takes
second place in soybean futures transactions.
Financial futures and commodity futures markets are expected to achieve
common development, said Zhu Juehai, assistant general manger of Shanhai
Futures Exchange.
Gold trading volume at the Shanghai Gold Exchange, China's largest
precious metals bourse, accumulated 3,909.48 tons by the end of May 2007,
worth 518.7 billion yuan. Platinum and white gold dealings totaled 131.63
and 146.21 tons respectively, worth 33.87 billion yuan and 526 million
yuan. The gold market will introduce gold futures and options, and
develop individual gold trading business, according to Shen Xiangrong,
chairman of the exchange.
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e and broad declines throughout Asia sent
Hong Kong's benchmark index lower on Monday, breaking a six-session
winning streak that resulted in a rise of over 1,400 points, or 7 percent.
The benchmark Hang Seng Index fell 177.56 points, or 0.8 percent, to
21,822.35.
Turnover reached HK$83.96 billion (US$10.76 billion), down from HK$95.81
billion Friday.
Analysts said they expect the blue-chip index to trade near 22,000 points
in the coming days on futures-related demand, though they said a
correction will likely follow in July given the spate of initial public
offerings that will drain liquidity from the stock market.
For this week, analysts said they expect the blue-chip index to trade
near 22,000 points on demand linked to futures trading. In the next few
days, "the market is likely in the hands of bulls who have bullets to
hold the market strength till the futures expirations on Thursday," ICEA
said in a research note Monday.
Among blue chip stocks Monday, 34 out of 39 ended in the red, dragged by
a sharp correction in the Chinese mainland stock markets in the
afternoon, as well as the broad decline in regional bourses.
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