"Purchases of stocks that are expected to have good earnings potential such
as banks and property developers are supporting the market," said Fan Hongyu, an
investment manager at China Jianyin Investment Securities Co. in Shanghai.
Listed lenders are expected to post an average 35 percent increase in profit
for the six months through June 30, according to Wu Yonggang, a banking analyst
at Guotai Junan Securities Co. in Shanghai. The growth rate for property stocks
is more than 25 percent, according to Sun Jianjun, a property analyst at the
Shanghai-based brokerage.
China Life Insurance Co., the nation's biggest insurer, gained 1.09 yuan, or
2.5 percent, to 44.53. Higher interest rates will boost returns for insurers,
which invest in fixed- income assets.
Local investors set up 295,229 accounts for investing in equities and mutual
funds on June 21, bringing the total to 106 million, according to the latest
figures from the China Securities Depository & Clearing Corp. Some 27
million brokerage accounts have been opened this year, more than five times the
total for the whole of 2006.
