www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

Economy

Markets

Industries

Insights

Reports

Events

Banks, realty developers lead share rally

(China Daily)
Updated: 2009-07-24 08:04

China's stocks rose, driving the benchmark index to a 13-month high, as banks and developers gained on optimism the government will allow more money to pump into the financial system to cement an economic recovery.

The International Monetary Fund said China has scope to boost State spending to counter rising unemployment, while the Asia Development Bank said East Asian governments should retain expansionary monetary policies.

The Shanghai Composite Index added 31.88, or 1 percent, to 3328.49 at the close, the highest close since June 2008. The measure has surged 83 percent this year.

The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, advanced 1.3 percent to 3651.97.

"Stocks may still gain further on ample liquidity and high expectation about economic growth," said Li Jun, a strategist at Central China Securities Holdings Co. "But they have already reached such an expensive level that a big correction is needed."

Related readings:  IMF welcomes China's substantial fiscal support to economy  Chinese shares hit new 13-month high  Chinese shares close higher on Wednesday  Chinese shares end lower on Tuesday

This year's gains have made Chinese stocks the most expensive since January 2008, Bloomberg data shows. Shares traded on the Shanghai index are valued at 36 times earnings, almost triple a November low of 12.9 times.

Minsheng Banking, the nation's first privately owned bank, climbed 4.6 percent to 8.79 yuan. Bank of China Ltd, the country's third-largest, added 2 percent to 4.53 yuan. Poly Real Estate advanced 4.3 percent to 30.29 yuan, bringing its annual gain to 173 percent.

A 1.4 percent drop in the Baltic Dry Index, a measure of transporting costs for commodities, drove shipping lines lower. China COSCO Holdings Co, the world's largest operator of dry- bulk ships, fell 1.2 percent to 17.47 yuan. COSCO Shipping Co, a unit of China's biggest shipping company, slipped 1.7 percent to 13.12 yuan.

Hang Seng surges

Hong Kong stocks rose, with the benchmark index closing at its highest level in more than 10 months, as banks led gains.

The Hang Seng Index added 3 percent to 19817.7, its highest close since Sept 10. A gauge tracking finance shares accounted for 53 percent of the broader measure's gain. The Hang Seng China Enterprises Index, which tracks H shares of mainland companies, rose 3 percent to 11823.75, its highest close since Aug 7.

The benchmark Hang Seng index has soared 75 percent from a more than four-month low on March 9 amid speculation stimulus efforts worldwide, including 4 trillion yuan of spending in China, will revive global growth.