Wednesday, July 6, 2011

China Raises Interest Rates

The People's Bank of China (PBOC - China's central bank) just announced that they are raising interest rates b 0.25%, from 3.25% to 3.50%. In addition, the yuan lending rate is increasing to 6.56% from 6.31%. Source: Wall Street Journal.

It's yet to be seen whether this will affect CNIT and other Chinese stocks in any significant way, though US futures were down this morning. In my watchlist of Chinese stocks, which holds a variety of small, less known companies as well as several popular, larger stocks, the effect seems mixed so far. Notably, SINA, SOHU, and BIDU are down this morning. CNIT, so far, is holding up quite well, up ~3% early into the session.

1 comment:

  1. Update: seems like this news may not have very much effect on the market now that we're a little over 2 hours into the session for 7/6. US stocks have largely recovered from some initial downward pressure, as have the "notable" Chinese stocks SINA, SOHU, and BIDU. SINA is back in the green in fact.

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