Shanghai SSE Composite flat as World Bank raises China growth forecast

<p>The Shanghai SSE Composite index is flat after the World Bank raised China’s growth forecast for 2013.</p>

The primary Chinese benchmark, the Shanghai SSE Composite index, closed on a flat footing this morning (December 19th) after the World Bank raised its growth forecast for the world's second-largest economy.

According to the organisation, stimulus measures and the approval of infrastructure projects in the country will help drive growth, averting the slowdown so many had feared.

Chinese policymakers have approved two interest rates since June and have signed off on infrastructure projects worth in excesses of $150 billion (£94 billion).

The international financial institution added that the improvement in factory sector output and investment indicates the economy is "bottoming out".

Indeed, the World Bank now anticipates China to grow by 8.4 per cent next year, which is an upward revision from its earlier estimate of 8.1 per cent.

At close of play this morning, the Shanghai Composite index was flat, ending the day on 2162.2 points.

Learn all about CFD trading platforms and the Chinese markets at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.