Several big investment banks predict China will go into the interest rate hike cycle

Analysts said that if the weekend did not raise interest rates, the market may show a certain degree of rebound on the morning of November 12, a Goldman Sachs report to Chinese customers, circulated in the market. One hint: the recent continuous monetary policy of the Chinese central bank is likely to trigger a rise in interest rate expectations, advising customers to sell all of the Chinese stocks they have profited from.　　The same day a A-share has hit the biggest daily decline since August 31, 2009.　　Some analysts say it may be a bit exaggerated to say that a report triggered a slump today, but that's how much the hot money and arbitrage funds are sensitive to liquidity contraction and policy shifts. International investment banks such as Credit Suisse have also predicted the central bank's tightening moves to raise interest rates at a time when Goldman Sachs is prompting customers to sell shares in Chinese companies.　　J.P. Morgan said in its report: The reserve requirement ratio is expected to rise at least two times in the next few months, 0.5% per cent, and three times 0.25% interest rate hikes in 2011. "To know that the 11th oil began to crazy impact trading, we are a little afraid, there must be a problem of sustainability, the market only petrochemical double male appears to pull up the situation, others such as bank stocks, coal stocks intact." A number of institutions have started selling profits. "Guo Liwen, general manager of Sino-Italian life investment, said," If only the oil sing solo, other blue-chip are dormant, follow the risk is very large, the reason for the petrochemical is more likely to be the agency in a safe haven, cover the early profits of the cash shipments. So, the end of the 11th index began to dive, everyone's first reaction is to run quickly. "Market analysts pointed out that the 12th crash, on the one hand is the expected change in monetary policy tightening, on the other hand, the collapse of futures from foreign markets, including the higher dollar innovation, a number of factors further exacerbated the slump. If there is no news of interest rate hikes over the weekend, there may be some rebound in the market in the future. "Because this round of inflation is mainly driven by liquidity, it also explains why the cyclical industries such as chemicals, gold and non-ferrous metals are being sought after by capital."　　"But after the plunge, these cyclical industries may not be a hot spot for money, and consumption and new energy will be replaced by new hot spots." Huaxia Times