China's central bank hikes interest rates

[mrEngineer]

the only immediate risk that I fear that may happen before the January effect is the war between the Koreans..

[newyorkcityboy]

The Chinese policy makers are trying to tighten to prevent inflation from running away, to try to engineer a "soft landing". But perhaps the risk as Chanos says, would be to tighten into a scenario where demand is already receding due to high prices. Unfortunately the big picture is hard to analyse and perhaps the easiest is to focus on specific companies and get them on the cheap/fair price.

[floorfilla]

Business News

China shares higher in morning trade

SHANGHAI - Chinese shares rose 0.53 percent in early trade Monday as a weekend interest rate hike -- the second in less than three months -- lifted a weight off investors' minds, dealers said.

The Shanghai Composite Index, which covers both A and B shares, was up 15.14 points at 2,850.30.

The Shanghai A-share index added 0.53 percent, or 15.86 points, to 2,984.74, while the Shenzhen A-share index rose 0.54 percent, or 7.34 points, at 1,359.40.

China's central bank on Saturday raised the one-year lending and deposit rates by 25 basis points each as authorities ramp up efforts to curb borrowing, rein in property prices and tame inflation.

"Now that the interest rate hike is finally out, investors can breathe a sigh of relief as the government is expected to refrain from raising interest rates again in the short term," Shanghai Securities analyst Qian Weihai told Dow Jones Newswires.

- AFP/ir


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different sentiment

[arthur]

China SSE ended down -1.90% at 2912, all happened after lunch hour.

I like the way the market screw people psychology up.
Am holding cards to myself. I don't have any investments opportunities anymore, given my portfolio style.

Trading momentum yes, investing for long-run... well another day I guess.