Sunday, May 20, 2007

China shares sink on monetary tightening

(Reuters) - But many investors believe the tightening is designed partly to prevent a bubble building in the stock market, where the index soared 130 percent last year and a further 53 percent this year to last week's all-time, intraday high of 4,081.426.




By raising deposit rates more than lending rates, the central bank narrowed banks' lending margins. Banks are heavily weighted in the index, so the damage to their earnings may dampen the entire market.


Read more at Reuters.com Hot Stocks News

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