BEIJING, March 17 (Xinhua) -- China's Renminbi-denominated assets posted a sharp rebound after the meeting of the financial stability and development committee under the State Council, reported China Securities Journal on Thursday.
On Wednesday, the committee, the top regulating and coordinating mechanism on the country's financial stability and development issues, convened a meeting to study the current economic situations and capital market issues, which, as analysts interpreted, conveyed obvious signals to maintain the healthy development of the economy and steady development of the capital market.
Since the start of this year, a slew of policies have been rolled out to boost the economy in China.
As the meeting required pragmatic boosts to the economy in the first quarter, the following efforts to stabilize the economic growth via related policies were unlikely to be too weak in view of the short-term economic growth challenges, said Zheng Houcheng, head of the research institute of Yingda Securities Co., Ltd.
Tang Jianwei, chief researcher with the finance research center of Bank of Communications deemed that the meeting required monetary policies should actively combat the challenges, in particular in the first quarter, hinting possible advent of interest rate or required reserve ratio cuts in the following period.
Currently, expanding credit growth was the principal task as the meeting highlighted reasonable new lending growth, added Tang.
After the meeting, analysts of many financial institutions noted that some pessimistic anticipation towards the A-share market was likely to be revised and the trend of the A-share market was expected to be guided more by the economic fundamental.
Li Xunlei, chief economist with Zhongtai Securities, believed that it was not listed firms' bad performance but investors' continuously weakening risk appetites that caused the slightly unsatisfying A-share market in recent years therefore improving expectations and confidence became rather important under the current circumstances.
In the following month, an upward revision window is expected to arrive on the stock market given the lessening possibility of further unexpected shocks relative to the international geological tensions and gradual functioning of previous economic growth stabilizing policies indicated by the better-than-forecasted economic data in the first two months of this year, said Zhang Qiyao, chief strategist with Industrial Securities.
On bond market, Qin Han, chief fixed-income analyst with Guotai Junan Securities reckoned that as expectations for the equity market stabilized, redemption pressures on fixed-income products and funds will be significantly alleviated, which may benefit bond market. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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