In the wake of the collapse of the Chinese market and the impact of the euro region due to the problem of Greece, and fears of global financial markets from a global economic catastrophe after a painful blow to the second largest economy in the world, the Saudi capital market remains positive with change rate of 2.47%,
Experts expect that; Saudi financial market stability despite influence of global markets is a sufficient evidence on the local market power; which will make global eyes focus on it to invest in, also they argued at the same time that it is difficult to judge the end of the losses in the Chinese market, which rebounded on Thursday, rising nearly six percent after the Beijing attempts succeed to stop declines that rocked global financial markets Finally, the strongest step yet to support the market was that Chinese Market Authority banned sailing on the shareholders of large stakes owners in listed companies. Separately, the central bank said it would allow banks to extend loans supported by shares.
Initially Talaat Hafez the financial expert and general secretary of the Committee of Information and banking awareness at Arabic banks has affirmed to »Al Youm» that the Chinese economy is one of the largest economies in the world which is growing at 10% annually, as it owns a lot of resources and its foreign investment outside China reaches up to trillion dollars, which is one of the largest states in the volume of foreign investments, and this reassure the return of the Chinese financial market and it is known that the occurrence of any collapse or a setback or terminal decline in the Chinese financial market will impact on the economy of the world and thus affect the Saudi economy in the financial and banking sectors, indicating the return of the Chinese economy soon and the Chinese government will take procedures for the return of the Chinese market to what it was.
Hafiz said that the Saudi economy is robust economy which has grown in the past year to 3.5% from 5% in previous years, due to the decline in oil prices and he expected that Saudi Arabia's economy will not affected directly due to the decline in the Chinese capital market, it is possible that the Saudi financial market may be affected by the crisis; because of psychological effect not real, because of the lack of Chinese companies in the Saudi capital market affect directly on the local market, with regard to the existence of a large commercial exchanges between the two countries Hafiz stressed that exports and imports won't be affected between Saudi Arabia and China with regard to trade between the two countries.
Hafiz said that the Saudi banking market will not be affected by the crisis; as it adopts in first priority on the employment of capital, deposits and investments inside the country, which exceeded 2 trillion in the second half of this year and the distribution of investment in the trading in banking market in the Saudi market inside the country on the outside account, noting that foreign assets are not great in number compared to the domestic assets in Saudi banks.
According to an analyst at the financial market Mohammed Bin Ali Al-Rajhi: the Chinese market collapse has no link to the Saudi financial market, but the negative consequences will be limited to the Chinese market, stressing that in the event that the sudden descent is associated with negative consequences for Chinese companies, will have an impact on the local market, and in If there is no justification in the Chinese capital market decline, there will not be any damage to the global and local stocks market.
And Al-Rajhi clarified that the financial market will see a coherent tends to rise, and the most likely cause of decreasing stocks value in the previous period was not because of the Greek crisis or a global crisis, as some believe, but before the Greek crisis, as some thought that the entry of foreign investors will create a positive backlash but the fact came unlike forecast which contributed to successive declines in the past period.
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