Austerity expected to prevail HK $21000 Mark

The National Bureau of Statistics released yesterday the economic data and market expectations are basically the same, with GDP growth of 8.7% per cent year-on-year, achieving the central "eight" goal, while the December CPI year-on-year increase of 1.9%, slightly lower than the recent rumors of 2%.　　But as the shadow of further austerity prevails, and the market's expectations of a hike in the mainland constrain short-term performance in Hong Kong stocks, the index fell further yesterday afternoon and even slipped through a key 21,000-point psychological barrier, close to 20,932 points last December. Funds to invest in common stocks of hedge stocks yesterday was affected by bad rumors of the trouble and decline. Although the mainland's economic data released yesterday morning generally better than the market expectations, but the market is worried that the mainland may raise interest rates earlier, so the impact of the data bias, so that the decline of the big city is not stop: The afternoon index of selling pressure increased, the end of the city lost 21,000 points of integer closed,　　The index of state-owned enterprises fell 2.64% to 11957.83 points, and the transaction amount was enlarged to HK $83.131 billion. Chinese banks have been put under pressure by concerns about further tightening of liquidity in the mainland, especially after yesterday's data showed rising inflationary pressures, with shares of 7 Chinese banks all lower, down between 1.32% and 3.78% per cent.　　Due to the fear of further tightening measures in the mainland, the market risk tolerance decline, the funds into the public sector hedging, the HEC (00006.HK), CLP (00002.HK) and China Gas (00003.HK), such as the index of shares in the reverse market has a better performance. In fact, Hong Kong stocks have fallen by about 1500 points in the last ten trading days from their highs. Li Fung Securities Research Department director Huang several analysis, yesterday big city deals more, the decline is also more comprehensive, the period refers to drive spot overall apparent drop, than the Dubai event makes investor confidence frustrated when more serious. The recent weakening of the Hong Kong exchange has dropped to 7.769, reflecting a significant reduction in foreign demand for Hong Kong dollars. But he said the mainland's continued issuance of central bank bills to absorb capital, raise the reserve requirement ratio, hoping to cool the asset bubble, and the economic data also good performance, the fall of the index to the current level has begun to reflect the changes in the mainland monetary policy and other factors.　　The company said that despite recent signs of weakness in Hong Kong's stock market, it believed the oversold situation could be rectified as investors ' focus shifted to the performance of listed companies.　　The shadow of interest rate hike the market many analysts were satisfied with the economic growth and inflation figures of the mainland last year, but expressed their views on whether they would raise interest rates earlier. Jiantang, director of the National Bureau of Statistics, said yesterday that the financial institutions ' loan balances of 40 trillion yuan (RMB, same below), increased 9.6 trillion yuan from the beginning of last year, the year-on-year increase of 4.7 trillion yuan. Earlier, the mainland has raised the reserve requirement ratio, and recently repeated a number of rumors of the return of the city, group of interests Securities research manager Huang said that the central government will not be a one-time rate hike, but first by restricting lending to give warning. Shen Qinghong, the chief executive of BMI fund management, also believes the mainland will continue to control inflation, but the short-term rate hike is notThe main problem is that the revaluation of the renminbi will lead to bubbles. Merrill pointed out that although the mainland's overall data than expected, but may not be good for the stock market, because the market will focus on future inflation, estimated inflation will become the theme of investment.　　Merrill believes that early interest rate hikes in the mainland is unlikely, but the mainland's financial policy is shifting to the future will affect the global policy adjustment, but the estimated adjustment will not be implemented soon, the mainland policy will continue to maintain a faster growth target.　　J.P. Morgan, managing director and China Securities and Commodities chairman, said that the mainland central bank could gradually tighten policy through administrative measures in the first half of 2010, and that the credit crunch for specific sectors would gradually emerge during the year, and that concerns about hot money inflows and export growth would limit interest rate increases. The Hong Kong Government yesterday expressed its stance on the local inflation problem according to the Census and Statistics Department, the composite CPI rose by 0.5% in the year to 2009, and inflationary pressures will remain subdued in the coming months as Hong Kong and the global economy are still in the early stages of recovery, and the current supply surplus capacity should help to curb the rise in costs and prices.