Chinese shares finish up 80 percent for 2009

Chinese shares rose 0.45 percent on Thursday to finish the year up 80 percent, driven by economic recovery and improved corporate earnings, dealers said. The benchmark Shanghai Composite Index, which covers A and B shares, closed up 14.54 points at 3,277.14 on turnover of 139.0 billion yuan (20.4 billion dollars).
The key index reversed a 65.5 percent plunge in 2008 when the global financial crisis ravaged markets, but it is still well below its record high of 6,124.04 on October 16, 2007. The market's recovery in 2009 was largely the result of Beijing's four-trillion-yuan pump priming efforts, making China's stock market one of the world's best performers this year.
Some analysts said they expect the market to extend its gains in the coming year given the economy's bright prospects. "Since China has been recovering from the financial crisis at a fast pace, I can say the stock market should have the potential to rise further," Xu Yinhui, an analyst at Guotai Junan Securities, told Dow Jones Newswires.
But Li Nian, an analyst at Shenyin Wanguo Securities, sounded a cautious note about the stock market. "The amount of new yuan lending will be smaller next year than this year. Moreover, with the economy on the mend, some funds will leave the stock market for industrial investment," Li said. The financial sector led the gains amid hopes for the imminent launch of the long-awaited stock index futures, traders said.
Industrial and Commercial Bank of China rose 0.9 percent to 5.44 yuan, China Construction Bank gained 1.7 percent to 6.19 yuan, Ping An Insurance ended up 1.0 percent at 55.09 yuan and Citic Securities increased 0.9 percent to 31.77. Stocks listed on the Nasdaq-style ChiNext board had mixed performances on Thursday.
Gansu Dayu Water-Saving rose 4.7 percent to 41.20 yuan, while Siasun Robot and Automation fell 3.0 percent 72.28 yuan. The Shanghai A-share index gained 15.21 points, or 0.44 percent, to 3,437.46 on turnover of 138.7 billion yuan, while the Shenzhen A-share index rose 7.67 points, or 0.61 percent, at 1,261.26 on turnover of 76.4 billion yuan.
The yuan closed the day at 6.8270 against the US dollar, down from Wednesday's finish of 6.8253. The Shanghai B-share index was up 1.72 points, or 0.69 percent, to 252.41. The Shenzhen B-share index gained 8.24 points, or 1.33 percent, to 625.95.