Economics
China Ratio Rise Doesn’t Hurt Stocks Outlook, RBS Says
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China’s bank reserve-ratio increase doesn’t change the “quite positive” outlook for the nation’s stocks, which will be boosted by the expanding economy and improving earnings, said Royal Bank of Scotland Group Plc.
China’s central bank told lenders on Jan. 14 to hold more deposits as reserves for the fourth time in two months, lifting required ratios by half a percentage point. The benchmark Shanghai Composite Index slumped 1.3 percent to a two-week low prior to the announcement, which came after the market close. The measure slid 3 percent to 2,706.66 at the 3 p.m. close today.