Stocks News
- Global rally has a flow-on effect
Date: 8-Mar-2007 Sources: (Xinhua Online)
China shares continued Tuesday's rebound yesterday amid the global markets recovery, led by robust performances from brokerage and real estate stocks.
The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B chips, gained 56.419 points, or 1.99 percent, to close at 2,896.594.
The A-share index advanced 1.97 percent to 3,043.17, while B chips rose 4.62 percent to 170.7.
The Shenzhen Composite Index, tracking the country's smaller bourse, also climbed by 2.61 percent to 750.25. Transaction volume of the two markets increased slightly from the previous session to 112 billion yuan (14 billion U.S. dollars) yesterday, when more than 90 percent of stocks in both markets advanced.
'The financial sector led the rise, especially Citic Securities, which will greatly boost investors' confidence,' said Wang Xiaoping, an analyst with Guangfa Securities.
Citic Securities, the country's biggest publicly traded brokerage, soared 8.27 percent to 39.94 yuan, after climbing 4.7 percent on Tuesday.
The increase comes after media reports said the brokerage will sell shares in Hong Kong to become the first national security firm to list outside the mainland.
Security firms benefited greatly from the bullish market last year when the benchmark Shanghai index climbed 130 percent.
Though mainstream opinion is that the bull market will continue this year, short-term corrections become major concerns among investors. A case in point is on February 27 when Shanghai saw the biggest drop in a decade.
Investment in funds, however, is still strong as residents lined up in long queues to buy funds in the morning in cities like Shanghai, Beijing and Guangzhou.
Power surge
China Vanke Co rose 2.09 percent to 15.61 yuan. Shanghai Lujiazui Finance & Trade Zone Development Co advanced 3.11 percent to 16.59 yuan.
The country's five biggest power companies, including China Huaneng Group and China Datang Corp, advanced after Xinhua news agency reported their 2006 profits jumped.
Huaneng Power International, the mainland listed unit of China Huaneng Group, went up 1.86 percent to 8.22 yuan, while Datang International Generation Co edged up 0.7 percent to 11.46 yuan.
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