Tuesday, 15 January 2013

Chinese stocks surge, eurozone industrial production falls

Chinese stocks rallied strongly on Monday on the possibility of greater foreign participation in the stock market. AFP/CNA reports:

Shanghai surged 3.06 per cent, or 68.74 points, to 2,311.74 after the head of China's securities regulator, Guo Shuqing, said the investment quota for foreigners in the domestic equity market could be increased 10-fold...

At a Hong Kong conference on Monday, Guo said at present investment by foreign institutions -- individuals are barred -- accounts for "just 1.5 or 1.6 per cent" of China's A-share market, stock denominated in the domestic yuan currency.

He said the quota could be increased 10-fold in an effort to boost the stock market, without elaborating.

Among the few economic reports on Monday was one showing that industrial production in the euro area fell 0.3 percent in November, its third consecutive decline.

Encouragingly, though, production of machinery used to make other goods, an indicator of future business, rose 0.7 percent in November after two months of declines.

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