Influence from American:
The United States take the lead in launching a series of measures to save the stock market, under the influence of that, the global stock markets were collectively increasing, and even successively created the largest single-day rise for decades.
Policies in China:
On September 21, 2008, Securities Regulatory Commission loosen the Policy on buying back the shares for Listed Companies:
Securities Regulation Commission issued the relevant comment draft to prescribe that if the listed companies want to purchase the shares, they only need to get the approval from the general meeting of shareholders.
On September 20, 2008, Wen Jiabao: To Keep the Stability of Financial Markets; To Maintain Stability in the Stock Market
Wen Jiabao pointed out that we must strengthen and improve macro-control to promote the fast and sound long-term economic development; especially we must hold the balance point of stability in economic development and the control in inflation so as to maintain stability for macro-economy, financial market and the stock market.
On Sept. 18, “combinatory punch”
From Sept. 19, the tax adjustment that the stamp duty would be levied unilaterally had been put into use. The SASAC supported the central companies to hold or buy back the shares of listed companies. The Huijing Company increased the holdings of listed banking shares.
September 15, the central bank announced to lower the interest rates
China’s central bank said on Monday it would reduce the benchmark loan interest rate and the reserve requirement ratio for commercial banks to ensure a steady and rapid economic growth.
The benchmark interest rate for one year yuan denominated loans will be adjusted down 0.27 percentage points from Tuesday, its first downward movement since October 2004.
Price of Domestic Product Oil faced the Pressure of Downward Adjustment
The sharp decline of international oil prices this month makes the domestic product oil price face the relatively great pressure on downward adjustment. One official of China Petroleum Group told to the reporter that the domestic oil prices had the possibility to reduce from the macro-economic aspect.
Tuesday Oil Prices closed at 91.15 USD per Barrel
The price of crude oil futures fell nearly 5% on Tuesday. It is expected that the global financial market turmoil and the cut from the Organization of Petroleum Exporting Countries caused the lowest close price since February.
China Petrochemical Refining Business is expected to Profit
The international crude oil prices created the lowest point, which means the domestic oil refining enterprises have been greatly reduced the operating pressure, some refineries can be profitable. Analysts had expected that there would be a further decline on crude oil prices in future.
Other News:
A: China Merchants Bank declared that the company had the bond issued by Lehman Brothers, which totally reached 70 million USD.
B: Vanke issued the listing announcement of corporate bonds.
C: In order to reshape the market confidence, in the past two days, the central banks of each country led by the U.S. Federal Reserve collectively saved the market, so that it injected over 300 billion USD liquid capital for financial system.
D: The Securities Regulatory Commission issued the new rules that the listed companies shall not implement the stock incentive compensation if they are in the red.
Listing Rules Modification
Shanghai and Shenzhen Stock Exchanges modify the listing rules with a large scale to consummate the trading suspension and information disclosure systems, while the new rules will be effective on October 1.
Bank of China issued 3 billion Yuan bond in Hong Kong again
Yesterday Bank of China announced that they would issue 3 billion Yuan bond in Hong Kong from September 5, 2008 to September 16, 2008.
Central Bank Releases “2007 Chinese Combating Money-Laundering Report”
The Central Bank yesterday announced the “2007 Chinese Combating Money-Laundering Report”, which revealed that there totally 350 financial institutions were being punished because they broke the rules while the penal sum was 26524.2 thousand Yuan.
First Issuance Application from Merchant Securities
According to the placard from Issuance Examination Commission in China Securities Regulatory Commission, the first issuance application from Merchant Securities will be raised at the meeting next Monday.
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