- Spain to Go to Market to Fund Banks, Regions
- Home Prices Hit Fresh Lows, But 'We See Signs of Hope'
- JPMorgan Implicated in Japan's Insider Trading Probe
- Cramer's Top Dividend Plays
- Manufacturing May Be Poised for a Quantum Leap
- Why June Could Be a Turning Point for Markets
- BlackBerry Maker Hires Advisers to Review Business
- Facebook Faces Extended US Review of Instagram Deal
- Shares of Facebook Fall Below $29 for First Time
- PB&J, Mac & Cheese Step Out From Kids-Fare Shadow
- Ackman: JCPenney Sales Have Hit 'Bottom'
- Goldman Investment Shines Light on Solar Power
- Facebook Options Soar on First Day
- Home Prices Hit Lows, But 'We See Signs of Hope'
- Auto Sales to Really Take Off This Summer?
- JPMorgan Debacle Points to Regulatory Incompetence, Corruption
- Are You Ready for Facebook Options?
- Option Bulls Dig Into Ivanhoe Near Lows
MOST SHARED
- Advanced Manufacturing Could Spark Next Industrial Revolution
- Facebook Stock Falls Below $29 for First Time
- Stocks to Watch: RIMM, LULU, DAL & More
- Marubeni Buys Gavilon for $3.6 Billion as It Eyes China
- Whistleblower Woodford Wins Olympus Settlement
- Cramer’s One-on-One with Airgas CEO
- BlackBerry Maker RIM Hires Advisers to Review Business
- Home Prices Hit Lows, But 'We See Signs of Hope'
- Digital Generation Bottomed Out: Finerman
- Lightning Round: Advance Auto Parts, Michael Kors, Pilgrim's and More
MOST POPULAR
HOT ON FACEBOOK
Despite China's Inflation Warnings, Analysts See Further Easing
Text Size 
Supervising Digital Editor, CNBC Asia
China's central bank warned on Wednesday that the country still needs to be on inflation watch, but analysts say, further monetary easing is on the cards, which could boost equity markets this year.
 |
Kohls Kohls|F1online RM|Getty Images |
China’s central bank in its fourth quarter monetary policy report said that a rebound in inflation should be prevented. But according to HSBC, the fact that the central bank increased its target for money supply growth to 14 percent this year from 13.1 percent in 2011 is a signal of further easing.
"While continued concerns about a potential rebound in inflation has slowed China's pace of policy easing so far, the new targets still imply more monetary easing to come," HSBC's economists said in a report published Thursday.
HSBC expects the People's Bank of China (PBOC) to cut bank reserve requirement ratios by 150 basis points in the first half of this year.
Stocks to Benefit
Expectations of monetary easing have already helped mainland stocks [.SSEC
Loading...
()
] rally seven percent this year, while Hong Kong stocks [.HSI
Loading...
()
] have risen 15 percent over the same period.
Alistair Fullerton, Head of Institutional Sales at brokerage IND-X Securities, told CNBC, he expects the rally in Hong Kong stocks to continue and he's especially bullish on the banking and housing sectors.
Michael Kurtz, Chief Asia Equity Strategist at Nomura, says despite the rebound in Chinese stocks there is still "deep value" in some of the cyclical stocks, which experienced declines last year.
"The name of the game here really is that China is now pretty unambiguously shifting in the direction of monetary policy, that's designed to support growth, rather than to fight inflation. This sets China up for a pretty smart rebound in terms of demand in the second-half of the year and equities should continue to rally in the weeks ahead,” he said.
- Companies that establish sustainable principles are positioned for long-term success, says this blogger.
- Advanced manufacturing is about customization, high-precision and performance. And it’s everywhere.
- Many veterans are turning to franchising as a way to make a living once they are out of the military.
- Have you ever wished you could just quit your job and follow your dream? These people have.
- Emerging-market bulls should look to Brazil, South Africa and Russia, as well as Thailand and South Korea.
- Some beers are better than others. An annual competition chose the ones that are the best.
Data is a real-time snapshot *Data is delayed at least 15 minutes
