OREANDA-NEWS. February 02, 2010. The Chinese government’s hints about the increase of the base rates and tightening of lending terms to banks that recently captured investor attention have made an adverse effect on the global stock markets. Investors fear that such actions will slow down the especially rapidly growing economy of the country, reported the press-centre of Ukio Bankas.  

“Increasing of the base rate and tightening of lending terms is beneficial for investors in the long-term period if this is done gradually and reasonably,” Julius Ivaska, deputy director of UAB Ukio banko investiciju valdymas, said. “Tightening of the monetary policy protects economy from overheating, encourages market participants to refrain from assuming unreasonably high risk and demonstrates the Government’s obligation to maintain a long-term stable growth of the national economy.”

In recent years China’s importance in the international finance markets has been increasingly growing – a rapid growth helps “to push” other world’s economies and the Chinese government’s actions have had an increasing influence on the international debt security and currency markets. Should the Chinese government’s efforts to slow down the rapid growth and maintain an 8-9 percent growth of GDP produce results, the country’s stock market country may be among those most attractive to investors in several coming years.

Recently, despite the published excellent macroeconomic indicators of China, i. e. a GDP growth bigger than expected in 2009 (8.7 percent), rapidly increasing consumption and low inflation, the Chinese stock prices went down. “From the sharp decline in March share indices had increased more than twofold and therefore correction was unavoidable. The Chinese shares with their price drop of around 18 percent since November 2009 offer a good investment chance to the investors who like to take a risk, Julius Ivaska said.

Presently UAB Ukio banko investiciju valdymas manages Ukio bankas Bonds, Ukio bankas Rational Investment Funds and the Chinese, Russian, European, US and Money Market Instrument sub-funds of Ukio bankas Investment Opportunities Fund. Offering of Ukio bankas investment funds is carried out via AB Ukio bankas client service unit and Ukio bankas internet banking system Eta bankas.