China has stock 'bubble' - Li Ka-shing
(Bloomberg)Updated: 2007-05-18 15:24
"We'll take a number of measures to strengthen our control of the economy," he told the African Development Bank's annual meeting in Shanghai.
Watching Prices
People's Bank of China Governor Zhou on May 6 said a bubble may be building in China's share market. While there is no evidence that inflation is getting out of control, the central bank is watching asset prices, he said.
The central bank has raised interest rates three times since April last year and increased bank reserve ratios seven times.
A slump in China's stocks may be felt beyond its borders. A record 9.2 percent plunge in the CSI 300 on Feb. 27 triggered a five-day rout that wiped more than $3.3 trillion from the market value of equities worldwide.
The CSI 300 Thursday climbed 2.1 percent to a record 3778.60, the biggest increase among markets included in global benchmarks. The index has almost tripled in the past year.
Li's influence on Hong Kong investors was evident in trading Thursday. Shares of Cheung Kong, the city's biggest developer by value, climbed 2.4 percent after stock exchange filings showed that Li raised his stake in the company to 39.29 percent from 39.21 percent.
'I'm Confident'
"I know my company well and I'm confident in its future," Li said. He was speaking after the annual general meeting of Cheung Kong.
Cheung Kong and its unit Hutchison Whampoa Ltd. bought shares in ICBC's $22 billion IPO, the world's largest ever stock sale. The company's Hong Kong shares have risen 39 percent since listing on Oct. 27.
Li also bought shares in China Molybdenum's $1 billion IPO. Shares of the
company, the country's second-biggest producer of the material used to toughen
steel, surged 59 percent on its April 26 debut.
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