China's key stock index ended 1.35 percent higher on Thursday, with banks and property stocks firmer a day after the market sank more than 3 percent following Beijing's surprise monetary tightening. The Shanghai Composite Index ended up 42.892 points at 3,215.55. Gaining Shanghai A shares overwhelmed losers 860 to 41, while turnover eased to 168 billion yuan ($24.61 billion) from Wednesday's 173 billion yuan.
"The short-term correction seems to be over. The rate adjustment is reasonable, suggesting the next step in tightening will not come soon," said Cao Xuefeng, an analyst at Western Securities in Chendu. China's bank reserve requirement increase came earlier than most traders and analysts had expected and was accompanied by an official campaign to keep asset prices in check, in part by approving more initial public offerings.
Top lender Industrial and Commercial Bank of China was flat at 5.09 yuan, while smaller bank Hua Xia Bank edged up 0.09 percent to 11.60 yuan. Property industry heavyweight China Vanke slipped 0.1 percent to 10.03 yuan. Shanghai Lujiazui Finance and Trade Zone Development rose 1.13 percent to 24.13 yuan.
Consumer sector shares outperformed before the traditional spring festival in mid-February. Sichuan Changhong gained 7.03 percent to 7.16 yuan, Nanning Department Store climbed by its 10 percent daily limit to 9.69 yuan, while Kweichow Moutai rose 4.4 percent to 168.54 yuan. Airlines shone with Air China up 7.16 percent at 10.62 yuan, while Southern Airlines gained 5.06 percent to 6.23 yuan. Shanghai International Airport jumped 4.78 percent to 19.29 yuan.
Hong Kong shares trimmed gains in volatile trade, ending down 0.15 percent. Losses among property stocks on fears that Beijing will rein in lending offset gains in airlines and consumer-related issues. The benchmark Hang Seng Index, which was up 0.65 percent at midday, ended down 31.65 points at 21,716.95, a day after posting its worst one-day percentage loss in six weeks after China tightened bank reserve requirements.
The China Enterprises Index of top locally listed mainland Chinese stocks fell 0.95 percent to 12,363.37. Market turnover fell to HK$84.2 billion ($10.86 billion) from Wednesday's HK$97.62 billion, the highest since November 27. Lenovo Group, the world's No 4 PC brand, was up 7.86 percent at HK$5.90 on news that its PC shipments jumped 42 percent in the fourth quarter, part of a broad-based surge in global shipments of personal computers, helped by strong US holiday sales of low-cost notebooks.
China Resources Enterprise, which has businesses in food processing and distribution, supermarkets and beer production, rose 5.12 percent to HK$30.80. Air China was up 7.51 percent at HK$6.30 after an aviation official said the airline and other Chinese carriers were expected to handle a total of 260 million passengers this year, up about 13 percent from 2009. China Shenhua Energy, the nation's largest coal producer, fell 4.43 percent to HK$37.75 after industry sources said the company had decided to cut back on the volume of term contracts to leave more tonnage for spot sales.
Comments
Comments are closed.