From: Oriental Morning Post
Compiler: http://www.fundcn.org

National Bureau of Statistics yesterday released the May CPI data, the overall consumer price
level over the same period last year rose 3.4%. dropped 0.3% rise for the past two years, the maximum value, While many experts said the CPI rising continuously will lead directly to the central bank’s interest rate increase, but some fund companies yesterday said that the This introduction of the CPI data will have a certain interest rate increase pressure, but any increase in interest rate policy would not necessarily be immediately introduced, short-term upward market turbulence is expected to establish the situation.

Fund stocks do more courageous

10:00 a.m. yesterday, the National Bureau of Statistics announced in May the CPI data, The overall consumer price level over the same period last year rose 3.4%, 3.1% rise in cities and 3.9% rise in rural areas.

As early as in data prior to the release of a number of experts have predicted that the CPI in May could increase in the same period last year around 3.4%. This would mean that the May CPI will be likely in April more than 3% of the foundation, again exceeded the central bank’s 3% annual bottom line. Some economists said that this data increases the central bank will certainly stimulate further interest rate increases to the market under control.

By the interest rate increase worries emotional impact of early trading yesterday around 10:00 a.m., coinciding with the CPI data was published, Shanghai and Shenzhen stock markets fell rapidly emerging, the coming to 3910, but since then have continued to rise rapidly. Eventually the Shanghai and Shenzhen stock markets rose 1.91% and 2.64%, Baoshouxu 4,072 points and 1,204 points. Stock turnover of 205 billion yuan, more than Shangyijiaoyiri increase dramatically.

It is noteworthy, yesterday announced the CPI data, the management of the market have speculated the subtle changes in attitude. But such agencies do more courageous funds, fund stocks yesterday as the market forces Ling Zhang, the whole plate rose up 3.5%, and relative to the large blue chip underestimate have again courted by the funds.

Policy of interest rate increases may not be immediately introduced

The CPI for the creation of a “new record” Taidahe silver fund companies that the current rise in the CPI. on the market basically no systemic impact because the market has tended to digest.

Silver Taidahe year is expected to average 3% in the CPI%, compared with last year’s average 1.5% higher 150 basis points, and in 2008 than in 2007 will be reduced, but is expected to increase during the year will still be room for interest rate.

And sub-category, the Silver Fund Taidahe company said that food prices in May rose 8.3%. contribute nearly 80% of the increase. Taidahe Bank that the current round of increases in the price of food with the same period in 2004 similar traits that have contributed to the increase in grain prices. inconsistencies is that the current rise in the price of food by farming more micro-mechanism caused fluctuations. It is expected that with the farming operation improves, this factor of the pressure on the CPI will be slowed.

Among the CPI data on the introduction of no great concern. The company investment department official said that from a long-term trend perspective, the appreciation of the renminbi rapidly, strong corporate profit growth is expected to continue beyond, and to reduce the static level of valuation, Therefore, China’s booming financial market development factors such as fundamentals unchanged. In addition, retail assets emerged exhausted, ample liquidity can still be guaranteed.

Among the funds that the government’s “well-protected” under the basic health and liquidity remain strong support, long-term bull market pattern unchanged. The short run, after several consecutive days of the substantial adjustment, the market shocks the prospect of upward established.

he policy that there is still a large market for powerful capital markets, More funds from the rich countries to judge policies promulgated look at the possibility of the CPI data influence. Rich Fund said that although the current CPI data on the introduction of interest rate increases have a certain pressure, and may lead to the central bank raising interest rates. But the interest rate policy would not necessarily be introduced immediately. If management to stabilize the stock market mentality might be postponed raising the interest rate policy introduced.

Copyright Fund China 2008.

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