Planned emission China shares index fell by 4%
The news that some of the biggest Chinese financial companies plan to increase their capital fell by nearly 4% the indexes of stock exchanges in Shanghai. Most markets in Asia and Pacific region also closed today’s session of the negative territory, and significant reductions were indexes in India, Indonesia and Hong Kong. The main index in China Shanghai Composite slipped 3.6% to 3 171 points and the exchange in Hong Kong Hang Seng was down by 1.8% to 22 210.4 points. This week it became clear that the five largest banks in China have submitted to financial regulators their preliminary plans to increase capital by issuing new shares. Depreciation of the dollar to 14-year low against the Japanese yen was strong pressure on share prices of Japanese exporters. The exchange in Tokyo, the Nikkei 225 fell by 0.6 percent to 9383.2 points, after the country’s Finance Minister Hirohisa Fuji said the government must take unusual measures to currency movements. During today’s session, the currency markets the Japanese yen rose to ¥ 86.30 per dollar, which is the strongest rate of July 1995, cited by Bloomberg. Growth in the yen damages to domestic producers because their products more expensive on foreign markets and reduce their earnings in other currencies, after being converted back into Japanese yen. In South Korea Cospi was down by 0.8 percent to 1599.5 points, after the business confidence of local manufacturing companies fell to its lowest level in four months in November. In Australia the S & P / ASX 200 is lower by 0.3 percent to 4708.6 points after news that the capital costs in the private sector fell by 3.9 percent in the third quarter. Today it became clear that Taiwan’s economy has contracted by 1.29 percent in the third quarter over the same period last year.
This is the weakest pace of economic downturn for the past year, the government expects the economy to shrink by 2.5 percent this year. The main stock index Taiex in Britain fell by 0.2 percent to 7739.2 points. The regional index MSCI Asia Pacific, which monitors the securities markets in ten Asian countries, Australia and New Zealand, yielded a 0.6 percent to 117.54 points. Each share in its composition, which is more expensive, accounting for two, which became cheaper. During today’s volatile session, the stock measure changes 18 times in the direction of their movement. Compared to March 9, when he reached its lowest value over the past five years, MSCI Asia Pacific has increased its value by 67%. Since the beginning of this year’s regional index rose by 32 percent, mainly due to extractive companies. For comparison, the broad U.S. index, S & P 500, rose by 23 percent since the beginning of the year.
Tags: China, financial companies, index, Planned emission, shares