• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Economy China’s Stock Support Boosts Asian Markets
Economy

China’s Stock Support Boosts Asian Markets

by October 23, 2024
by October 23, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

China’s Stock Support Boosts Asian Markets

China’s central bank pumped the entire Asian market by introducing a plan to support the stock market through share repurchases by companies and major shareholders. China, the world’s second-largest economy, gained investors’ confidence after this strategic move.

The government issued guidelines for state banks to grant loans for stock repurchases. These loans are available to companies and top shareholders. Only 21 designated financial institutions are providing the money. The maximum interest rate for these loans is 2.25%.

The bank has announced plans for the upcoming loan dispersals. Following this announcement, the Asian market showed a significant upward trend. Shanghai gained 2.83%, while Hang Seng rose by 3.48%. Taiwan saw an increase of 1.85%. Other Asian markets also closed positively.

This decision of China tends to be in favour of the Chinese economy as it reflects the confidence of the government and corporations in the country’s growth. This attracted investors all around the globe and indicates the health of the country as investors anticipate stability and potential market gain.

The Central Bank launched a re-lending program worth 300 billion yuan. This allows financial institutes to borrow money from the People’s Bank of China for share purchases by listed companies or their major shareholders. This re-lending will be done at a set interest rate of 1.75% for 21 eligible financial institutions, policies, and banks. This loan can only be applied at the start of each quarter said People’s Bank of China.

The Upcoming Future of China’s Economy

With the money coming into the market, more benefits are waiting for the investors and the traders on their doorsteps, as such a huge amount of money brings in liquidity into the market. This liquidity will attract traders and will increase the stock average movement.

The constant injection of capital in the market will bring stability to the stocks during volatile periods. This stability minimises the risk of the market moving downwards.

In an active market situation, the market reaches its peak and shows bullish sentiments. This environment encourages fundraisers to enter the market. Companies find it easier to raise capital during a bull run. As a result, more businesses conduct Initial Public Offerings (IPOs), leading to increased business growth.

Stock Manipulation and Government Power Waiting Doorstep

With easy access to money, concerns exist for sector or stock manipulation, as pumping huge amounts of money can easily inflate stock prices, leading to stock or market bubbles if not managed carefully.

Raising funds from the government sounds good, but failing to generate enough returns could give the government potential control. In the long term, if companies don’t produce the desired results, the government might increase its majority control over them.

The post China’s Stock Support Boosts Asian Markets appeared first on FinanceBrokerage.

You Might Also Like
  • Ex-CNN anchor wins NY Dem primary to challenge Biden-district Republican Nick LaLota
  • Georgia state senator moves toward impeaching DA Fani Willis over Trump charges
  • New York prosecutors signal Trump may face criminal charges from Stormy Daniels scandal
  • Biden to Democratic leaders: ‘I’m tired of this trickle-down economics’
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Netflix Stock Jumps 5% as Strong Q3 Earnings, $9.83B Revenue
next post
New Boeing CEO to give clues about company’s future, while striking workers vote on new contract

You may also like

Reporter’s Notebook: Aboard the USS Dwight D Eisenhower in the...

February 25, 2024

DCCC gives talking points to House Dems amid Jordan’s bid...

October 18, 2023

Gold and Silver: New Higher Targets and Prices on Friday

October 4, 2024

Minnesota lawmakers target Amazon, other warehouses with productivity quota regulations

May 18, 2023

Philippine mayor accused of acting as Chinese asset amid investigation,...

May 18, 2024

Texas Gov. Abbott defends decision to build floating border wall...

July 29, 2023

Ripple and Tron: New support levels on Thursday

October 10, 2024

‘Progressively Worse’: Kamala Harris, Joe Biden, ‘The Squad’ — they’re...

July 30, 2024

Trump urges Biden to follow through with debate promise: ‘I’m...

May 11, 2024

FLASHBACK: New Harris campaign senior adviser made several insensitive comments...

July 26, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past This Level Crucial For Resumption Of Upmove

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,309 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past...

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Here’s how AI is being used...

    May 23, 2023

    Trump 2024 rival Christie’s plan to...

    June 23, 2023

    White House website praises lifetime Supreme...

    July 30, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here