Don't Look Now But China's Stock Markets Are Rebounding
January 10, 2012
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After getting smoked for big losses in 2011, Chinese stock markets are rebounding in 2012. China stocks rose for a third consecutive session on Tuesday with Shanghai gaining +2.7%, which follows a +2.9% rally on Monday.
In addition to the latest weak trade data, which appears to be producing hopes in the markets for a shift in China toward monetary easing, the WSJ opines that comments from a Chinese Securities official on opening up capital markets to foreign investors have also given stock markets a boost.
Citing comments from Guo Shuqing, who is chairman of the China Securities Regulatory Commission, the WSJ says China will open its capital markets further to foreign investors. The report suggests the China will seek a greater role for long-term institutional investors in an effort to help boost the country's sluggish stock market.
The article noted that this is the latest indication that Beijing is making a push to encourage stronger investor sentiment. The Journal added that Guo's remarks follow Chinese Premier Wen Jiabao's weekend statement that the government will take measures to boost market confidence, including reforming new share offerings and improving corporate dividend payouts.
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