Top Biz News

Equities firm up led by financials

(China Daily/agencies)
Updated: 2009-12-03 08:06

Chinese stocks rose for a third day, led by financial companies and raw-materials producers, after Caijing Magazine said the government will extend support for the property market and commodities prices gained.

The Shanghai Composite Index rose 34.39, or 1.1 percent, to 3269.75 at the close, extending a two-day, 4.5 percent gain. The gauge plunged 6.4 percent last week. The CSI 300 Index added one percent to 3597.33.

"The key investor concerns now center on policy tightening and stimulus withdrawal," said Zhou Xi, a Tianjin-based strategist at Bohai Securities Co. "Markets are going to be very sensitive to news about any likely policy actions."

China Vanke Co, the nation's biggest developer by market value, gained 2.2 percent to 11.75 yuan. Gemdale Corp climbed 3.1 percent to 15.95 yuan and China Merchants Property Development Co jumped eight percent to 33.22 yuan.

The government will continue to support the development of the nation's real-estate market, Caijing Magazine reported on its website yesterday, citing an unidentified official at the Ministry of Housing and Urban-Rural Development.

Shandong Gold advanced 8.2 percent to 91.88 yuan. Jiangxi Copper, the nation's biggest producer of the metal, rose 3.9 percent to 44.45 yuan. Aluminum Corp of China Ltd gained 6.3 percent to 15.7 yuan.

Investors opened 454,027 accounts to trade mainland stocks in the five days ended Nov 27, the most in three months and a seventh weekly increase, according to data from the nation's clearing house.

Hang Seng advances

Hong Kong stocks rose for a third day as banks climbed after the Economic Observer newspaper said Central Huijin Investment Co may help China's banks replenish capital.

"The one single argument to support stocks at the moment is liquidity," said Vincent Chan, a Hong Kong-based analyst at Credit Suisse Group AG.

"However, when everybody is expecting liquidity to do such a big job, any change in government policy will kill you."

The Hang Seng Index added 0.8 percent to 22289.57 at the close. The gauge plunged 5.9 percent last week, the most since the week ended March 6, as Dubai World sought to delay repayment on some of its debt.

Shares on the benchmark Hang Seng Index trade at 17.6 times estimated earnings, up from 10.6 times at the beginning of the year.