Stocks News
- Chinese shares close 0.31% higher as concerns ease over tightening moves
Date: 6-Sep-2007 Sources: (Xinhua Online)
BEIJING, Sept. 5 (Xinhua) -- Chinese share prices regained some lost ground on Wednesday as concerns over further tightening measures were eased by a senior official saying inflation was under control and the economy was not overheated.
'Economic growth has accelerated since the beginning of the year but it does not follow that the economy is overheated,' said Bi Jingquan, vice minister in charge of the National Development and Reform Commission.
Prices will remain stable because the overall domestic supply is sufficient and the factors which have led to the recent price hikes are temporary, said Bi.
The benchmark Shanghai Composite Index, which covers A and B shares traded on the Shanghai Stock Exchange, closed at 5,310.72 points, up 16.67 points, or 0.31 percent, from the previous close.
The market witnessed greater and more frequent fluctuations during the day's trading, with the index swinging between 5337.93 points and 5223.67 points.
The Shenzhen Component Index was down 48.78 points, or 0.27 percent, to close at 18,002.00 points.
Combined turnover of the two bourses continued to shrink to 233.46 billion yuan (31.1 billion U.S. dollars) from 282.51 billion yuan on Tuesday and 293.36 billion yuan on Monday.
The nonferrous metals stocks led the market, with Chinalco's listed arm, Aluminum Corp of China, up 4.8 percent, Henan Zhongfu Industrial Co. up 9.79 percent and Yunan Copper Co. up 5.60 percent.
The energy sector also performed strongly due to news that the country would invest two trillion yuan in the renewable energy industries during the 2006-2020 period.
The Hubei-based Linuo Solar Energy Co. rose by the daily limit of 10 percent, Gansu-based Ronghua Industrial Group surged 5.56 percent and Xiantan Electric Manufacturing Group gained 2.14 percent.
Bank and real estate stocks remained weak. The heavyweight Industrial and Commercial Bank of China dipped 1.02 percent, China Merchants Bank declined 2.19 percent and Vanke Group, China's No. 1 property developer by market value, dropped 3.08 percent.
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