6:00AM New York, 6:00PM Hong Kong - Hong Kong may consider using foreign currency reserves to avert crisis.
Market Sentiment
In Hong Kong trading Hang Seng Index spiked 10.24% or 1,515.29 to 16,312.16, and the China Enterprises of Hong Kong listed mainland shares, or H shares, advanced 13.3% or 947.63 to 8,083.43. In Shanghai trading CSI 300 Index advanced 4.12% or 78.53 to 1,985.49.
Daily turnover on main-board was HK$72.6 billion compared with HK$69.4 billion on Friday last week
Hong Kong May Dip in Reserves
Bloomberg News reported today on its Web site that Hong Kong under secretary for financial services Julia Leung said in an interview with the Hong Kong Commercial Broadcasting that the government may use its $1.4 trillion reserves to stabilize its financial markets.
According to the report the move might be reminiscent of the period during the Asian financial crisis when Hong Kong Monetary Authority used $15 billion of government stock purchases to defend the value of the local unit.
Hong Kong is presently ratcheting up efforts to prevent the financial crisis from spilling over into the mainstream economy.
Retail Sales to Rise 12.8%
Xinhua News Agency reported on its Web site that projections from Chinese Academy for Social Sciences indicate that the retail sales of consumer goods will increase by 12.8% to Rmb10.67 trillion in 2008 due to rising consumption.
The CASS estimates that sales will further rise by 12.5% to Rmb12.48 trillion in 2009.
Authorities in China believe that high domestic consumption will help buttress macro-economic growth.
Gainers & Losers
Hong Kong market averages rose buoyed by the European Union action to support interbank lending and on speculation that China''s sovereign wealth fund Central Huijin will embark on another round of buying in order to buttress the local financial system.
Financial stocks gained. China Merchants Bank soared 18% to HK$16.28, ICBC climbed 14%, China Construction Bank and Bank of China rose 12%.
China Life increased 16% and Ping An Insurance advanced 16%. PCCW declined 1.8%. |
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