From Bloomberg:
June 29 (Bloomberg) -- Chinese new bank loans worth about an estimated 1.16 trillion yuan ($170 billion) were invested in the stock market in the first five months of this year, China Business News reported, citing a government economist.
That’s 20 percent of the 5.8 trillion yuan loans banks extended in the period, the Shanghai-based newspaper said, citing Wei Jianing, a deputy director at the macro-economics department of the Development and Research Center under China’s State Council.
That’s a lot of money that is funneled to the local stock markets. Another question we ask ourselves: can markets go down a lot with this kind of support? I doubt it.
June 29 (Bloomberg) -- Chinese new bank loans worth about an estimated 1.16 trillion yuan ($170 billion) were invested in the stock market in the first five months of this year, China Business News reported, citing a government economist.
That’s 20 percent of the 5.8 trillion yuan loans banks extended in the period, the Shanghai-based newspaper said, citing Wei Jianing, a deputy director at the macro-economics department of the Development and Research Center under China’s State Council.
That’s a lot of money that is funneled to the local stock markets. Another question we ask ourselves: can markets go down a lot with this kind of support? I doubt it.
No comments:
Post a Comment