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.