• 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
  • Dems who were pressed to retire due to age concerns have a history of refusing to go
  • Democrat Sen. Bob Menendez defends himself against bribery charges: ‘Active smear campaign’
  • Mass migrant releases begin in San Diego as border overwhelmed: ‘You’re free’
  • Kansas man convicted of threatening to kill Republican congressman, could face 10 years in prison
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

The prosecution’s star witness against Trump, Michael Cohen, is a...

May 11, 2024

Leveraging ChatGPT for enhanced trading strategies

September 13, 2024

Senate advances $95B Ukraine and Israel aid package, setting stage...

April 24, 2024

Democrats, progressives cheering Trump verdict should be mourning this loss...

June 3, 2024

The Greatest Threat to World Peace: North Korea’s Kim Jong-un?

December 23, 2022

Biden’s Ukraine funding request triggers House showdown: ‘Shoveling money out...

August 10, 2023

Democrat Dean Phillips attacks Biden for trying to upend traditional...

December 22, 2023

Alexei Navalny’s wife has 5 ominous words for Putin ahead...

May 7, 2024

JEPI Stock Price And Analysis

September 17, 2024

North Carolina rolls back supervision requirements for teen drivers

May 6, 2023

    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

    • US Strikes Iran: What Comes Next For Stocks?

      June 22, 2025
    • The NASDAQ 100, On The Brink Of A Breakout, Needs Help From This Group

      June 21, 2025
    • Tesla agrees to first deal to build China’s largest grid-scale battery power plant

      June 21, 2025
    • Oil prices rise more than 1% as Israel vows to intensify attacks on Iran

      June 20, 2025
    • RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New Rally?

      June 20, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,602 views
    • 2

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

      June 27, 2024 2,879 views
    • 3

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

      August 9, 2024 2,582 views
    • 4

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

      July 10, 2024 2,543 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,419 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,143)
    • Investing (538)
    • Stock (2,623)

    Popular Posts

    • 1

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

      June 25, 2024
    • 2

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

      June 27, 2024
    • 3

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

      August 9, 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

    • US Strikes Iran: What Comes Next For Stocks?

      June 22, 2025
    • The NASDAQ 100, On The Brink Of A Breakout, Needs...

      June 21, 2025
    • Tesla agrees to first deal to build China’s largest grid-scale...

      June 21, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,143)
    • Investing (538)
    • Stock (2,623)

    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

    Ohio abortion amendment is an attack...

    July 6, 2023

    House Democrat Anna Eshoo announces she...

    November 22, 2023

    Weiss says he ‘wasn’t granted’ special...

    November 10, 2023
    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