The Week In Hindsight, 27 December 2013
Chinese stocks snapped their losing streak this week as the PBOC intervened in market for overnight financing, carrying out yet more reverse repo transactions in order to bring down funding costs.
In another positive move for investors in China, Li Keqiang the Chinese Premier spoke out this week to advocate the need for and benefits of greater regulation aimed at providing stock market investors with a higher degree of protection.
Despite the fact that the Chinese economy has managed to avert the hard landing which many predicted for 2013, Chinese equities have remained in a state of decline.
Keqiang’s comments come ahead of an expected wave of privatisations due to hit the Chinese stock market in January 2014. The state sell offs come as part of a wider economic reform package being implemented by government; measures which some analysts describe as the catalyst required to reverse the downtrend that has gripped Chinese equities since the onset of the financial crisis.
The information provided by Stockatonia, via both the telephone as well as the Stockatonia websites, is prepared as general information and general information only. As a result, the information in question does not constitute a recommendation to either buy and sell or not to buy and sell, any items or products treated as securities or financial instruments under UK laws and regulations.
To the extent that it is necessary, you agree not to act directly upon any information made available via telephone contact with Stockatonia and its representatives, as well as online contact with Stockatonia and its representatives, without first consulting your own financial adviser or investment adviser.
To the extent that it is permitted under the laws of the United Kingdom, Stockatonia and its representatives can accept no liability whatsoever in relation to losses incurred by clients, prospective clients and members of the public where these losses have arisen out of action, or inaction, which has taken place as a result of any form of contact with Stockatonia or its representatives.
This may be contact carried out by internet-driven media, letters and materials which are sent by post as well as information conveyed by Stockatonia and its representatives via the telephone.