- 10 Minutes until the close of morning trade for the Shanghai Comp.
- The Comp. tested 2,000 on Monday 19th November but failed to close below it, finishing the day in positive territory.
- We did see an aggressive defense of the 2,000 level when the mainland index tested it back in late September of this year and the last time the index has traded firmly below the figure was back in early 2009 during the height of the sub-prime crisis.
Analysis details (12:28)
- The index is being weighed down by Consumer goods, Health care and consumer services.
- No new fundamental news to drive this move lower but over the past couple of days we have heard that the PBOC are unlikely to change their monetary policy in the near future. We have also had weigh on sentient the fact that there have been no new policies from the new Chinese leadership who have no reformist members.
- Earlier in the week China announced that they will implement a sliding scale to stock dividends from January 1st to encourage buy and hold, hopefully deterring short-term speculators.
- Also reports in recent days suggest that China is to implement property tax schemes in several areas.
21 Nov 2012 - 12:16 - Equities - Source: RANsquawk
RANsquawk provides audio news and commentary for over 15,000 professional traders and brokers worldwide. Services include: