Wednesday, November 24, 2010

Research credit funds into the stock market should not be restricted

 Since February 12 the central bank since the financial data released in January, up 1.62 trillion yuan of new loans whereabouts became the focus of the industry. In broad money supply M2 increased by 18.79% of the cases, reflect the economic boom of the index growth rate of narrow money supply M1 in 1997 but dropped to its lowest level since statistics for the month increased by only 6.68%, lower than the previous year an increase of 2.38 percentage points. Obviously, the increase in bank loans and not the flow of economic entities. According to analysis, in January into the real economy is not the credit funds of up to 660 billion yuan. So what about the flow of huge amounts of money, no doubt cause for concern.
At the same time, the stock market since January this year, demonstrated by the ample liquidity natural for people to have a credit funds into the stock market speculation. Shenyin Retrospect, principal analyst of macro policy recently, says that in January of this year, up to 660 billion yuan RMB credit funds have been switching to fixed term or for business buy shares.
credit funds in the end goes to where? This is regulators concerned about. the face of last December and January this year, the surge in credit, the current from the central bank, China Banking Regulatory Commission the two men is a comprehensive business diagnostic Bank credit situation. According to the analysis of professionals, This macro is very important to determine the country; the second is to check whether the loan is consistent with regulatory rules, compliance with relevant policies, resolutely defending the possible risks.
there may be credit funds into the stock market's sake. Comprehensive in the central bank and China Banking Regulatory Commission Loans thoroughly after coming out of the news of whereabouts of the stock market seemed timid. by this news, the stock market on February 17 immediately down trend appeared, the Shanghai index down 2.93%, a group of stocks intraday trend appears diving. < br> In fact, about 2009, the Shanghai Composite Index rose sharply in the last 30% of the cases, a certain level of stock market correction is necessary, February 17 compared to before the callback is in fact the rise not enough. However, the February 17 callback involves regulators investigating the issue of credit funds. so there zealous media, good news to start an interview on the matter. One is called a closely related persons banks are lending to the peak, but this time, the CBRC will also pay close attention to this, almost the same time will send personnel to conduct research across the country, this is routine.
I believe the China Banking Regulatory Commission on the credit funds research is the routine, Investors heard before saying a lot. But the question is, should there be the flow of credit funds in the stock market, regulators may ignore you?
clearly can not, the stock market is not the research restricted the flow of credit funds, nor that a restricted areas. In fact, if there credit funds into the stock market, regulators conducted this research will be very desirable. after all, is a violation of credit funds into the stock market, the China Banking Regulatory Commission clearly states: directly or indirectly into the stock market. funds entering the stock market, the stock market itself, the health and development. The illegal funds into the stock market, stock market speculation would only aggravate the atmosphere, will only aggravate the volatile stock market.
So, although not specifically for credit regulators inflow of funds into stock market research, but once that credit funds into the stock market, I believe regulators should also perform their duties resolutely investigate and punish. 

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