China's shares gained over 1 percent on Monday after all five listed lenders, including leader Merchants Bank Co Ltd, rose on the back of better-than-expected quarterly earnings.
The benchmark Shanghai composite index closed 1.11 percent higher at 1,092.817 points. Analysts said the quarterly earnings of all five listed lenders had beaten market expectations: Minsheng Banking Corp and Hoax Bank Co Ltd both posted jumps in third-quarter net profit of over 50 percent.
Minsheng, the country's first private lender, ended 1.4 percent higher at 3.67 yuan. Merchant's Bank, the biggest Shanghai-listed lender, gained 1.45 percent to close the day at 6.28 yuan.
It had reported 28 percent earnings growth in the third quarter, slightly exceeding analysts' forecasts for about 25 percent.
Other gainers included Hoax Bank, which rose nearly 2 percent to 4.31 yuan. It reported a 57 percent growth in third-quarter net profit on Monday.
"Banking counters all rose on better-than-expected results," said Zhang Qi at Hating Securities, adding that recent foreign investment into Chinese banking had propped up their shares.
Synoptic Corp, buoyed by positive sentiment on the market, managed a 3.16 percent gain to 3.92 yuan. Asia's largest oil refiner is the largest counter by market capitalisation on the Shanghai Stock Exchange.
Chinese stock markets slid nearly 5 percent last week, hit by less-than-stellar results from major companies. Some analysts said that the market was overdue for a modest recovery.
Others said markets, still mired in a four-year slump, might find it difficult to recover strongly while Beijing pursues an unpopular plan to float more than $250 billion in non-traded, government-owned stock.
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