China’s stocks rose for a fifth day, extending the benchmark index’s bull market rally, after exports climbed last month and the government said it will promote sales of construction material in rural areas.
China Vanke Co. and Poly Real Estate Group Co. jumped at least 6.8 percent, leading a gauge of property stocks to the biggest gain in almost five months. Anhui Conch Cement Co., the largest cement maker, advanced to the highest in two months on the prospect higher sales will boost earnings. SAIC Motor Corp. paced gains among automakers after domestic vehicle sales accelerated last month.
“China’s economy will grow steadily as there’s no major worry over a big slump in external demand,” said Zhang Ling, a fund manager at Shanghai River Fund Management Co. “The market is becoming more optimistic about the economy.”
The Shanghai Composite Index climbed 19.95, or 0.7 percent, to 2,861.36 at the 3 p.m. close, the highest since May 5. The CSI 300 Index added 1.4 percent to 3,217.58. The Shanghai gauge has rebounded 21 percent from the 2010 low on July 5, surpassing the threshold some investors consider the beginning of a bull market, on signs that economic growth will remain resilient.
The nation’s exports rose 25.1 percent from a year earlier and imports climbed 24.1 percent, the customs bureau said on its website today. China posted a $16.9 billion trade surplus for September, capping the largest quarterly excess since the financial crisis in 2008 as pressure mounts for a stronger yuan.
A measure of property stocks jumped 4.2 percent, the most since May 24. Vanke, the biggest listed property developer, jumped 6.8 percent to 9.40 yuan. Poly Real Estate, the second largest, surged the 10 percent daily limit to 15 yuan. Gemdale Corp., the four largest, climbed 7.3 percent to 7.33 yuan.
Low Valuations
The property gauge has slumped 20 percent this year, the worst performer among the five industry groups of the Shanghai Composite, after the government raised down payment and suspended loans for third-home purchases.
“Valuations of property stocks are low,” said Shen Aiqin, an analyst at GF Securities Co. in Guangzhou, who has an “overweight” rating on the property industry. “As investors turn more optimistic about the economy, these cyclical stocks such as developers are what investors buy aggressively.”
Chinese banks extended 595.5 billion yuan ($89 billion) in new local-currency loans last month, the People’s Bank of China said today. That compared with the median 500 billion yuan forecast in a Bloomberg News survey of 18 economists. M2, the broadest measure of money supply, rose 19 percent in September from a year earlier, the central bank added. That compared with economists’ 18.9 percent median estimate.
Low Valuations
China will become “extremely cautious” in raising interest rates in order to prevent hot money inflows and to control the pace of yuan appreciation, Zhang Monan, a researcher with the State Information Center, wrote in a commentary published in the China Securities Journal newspaper today.
Anhui Conch paced the advance for cement produces, rising 4 percent to 25.78 yuan, the biggest gain since Aug. 5. Gansu Qilianshan Cement Group Co. added 3.4 percent to 18.97 yuan. Tangshan Jidong Cement Co. advanced 5.3 percent to 24.28 yuan.
China will start trials of a program to promote sales of construction materials, focusing on cement, in rural areas, the Ministry of Housing and Urban-Rural Development said yesterday after the market closed.
SAIC, China’s largest carmaker, surged 4.7 percent to 19.84 yuan. FAW Car Co., which makes passenger cars in China with Volkswagen AG, gained 5.1 percent to 21.85 yuan.
Wholesale deliveries of passenger cars rose 19.3 percent to 1.21 million, accelerating from 18.7 percent in August, the China Association of Automobile Manufacturers said in an e- mailed statement yesterday.
Consumer Stocks
Kweichow Moutai Co., China’s biggest producer of baijiu liquor by market value, led consumer stocks lower on concern recent gains were excessive. An index tracking consumer staples producers fell 1.8 percent, the most since Sept. 29 and the biggest loss among the CSI 300’s 10 industry groups. The consumer gauge has rallied 4.9 percent this year, compared with a 10 percent loss by the broader measure.
Kweichow Moutai dropped 3.4 percent to 161 yuan. The stock last week climbed to its highest level in 10 months. Wuliangye Yibin Co., the second biggest, lost 3.2 percent to 33.15 yuan. Tsingtao Brewery Co., the nation’s second-largest brewery by volume, slid 4 percent to 36.97 yuan.
Asia’s Worst
The Shanghai Composite is Asia’s worst performer this year, with a 13 percent decline through yesterday as the government boosted measures to slow the economy and cool property prices. At the same time, Indonesia’s Jakarta Composite Index rallied 40 percent, Thailand’s SET Index jumped 33 percent and Malaysia’s FTSE Bursa Malaysia KLCI Index rose 17 percent.
China stocks will extend their rally as investors increase purchases in a market that lagged behind gains in Asia, according to Templeton Asset Management Ltd.’s Mark Mobius.
The Shanghai index’s rise above its 200-day moving average is a “positive sign” that signals further gains for the benchmark gauge, according to Schaeffer’s Investment Research.
The moving average may climb to April highs after the Chinese stock gauge exceeded the average for the first time in about six months yesterday, said Ryan Detrick, a Cincinnati- based analyst who studies chart patterns to predict prices at Schaeffer’s Investment. The 200-day moving average rose as high as 3,097 in April, according to data compiled by Bloomberg.
--Zhang Shidong. Editor: Allen Wan, Richard Frost
http://jodnet.blogspot.com
China Vanke Co. and Poly Real Estate Group Co. jumped at least 6.8 percent, leading a gauge of property stocks to the biggest gain in almost five months. Anhui Conch Cement Co., the largest cement maker, advanced to the highest in two months on the prospect higher sales will boost earnings. SAIC Motor Corp. paced gains among automakers after domestic vehicle sales accelerated last month.
“China’s economy will grow steadily as there’s no major worry over a big slump in external demand,” said Zhang Ling, a fund manager at Shanghai River Fund Management Co. “The market is becoming more optimistic about the economy.”
The Shanghai Composite Index climbed 19.95, or 0.7 percent, to 2,861.36 at the 3 p.m. close, the highest since May 5. The CSI 300 Index added 1.4 percent to 3,217.58. The Shanghai gauge has rebounded 21 percent from the 2010 low on July 5, surpassing the threshold some investors consider the beginning of a bull market, on signs that economic growth will remain resilient.
The nation’s exports rose 25.1 percent from a year earlier and imports climbed 24.1 percent, the customs bureau said on its website today. China posted a $16.9 billion trade surplus for September, capping the largest quarterly excess since the financial crisis in 2008 as pressure mounts for a stronger yuan.
A measure of property stocks jumped 4.2 percent, the most since May 24. Vanke, the biggest listed property developer, jumped 6.8 percent to 9.40 yuan. Poly Real Estate, the second largest, surged the 10 percent daily limit to 15 yuan. Gemdale Corp., the four largest, climbed 7.3 percent to 7.33 yuan.
Low Valuations
The property gauge has slumped 20 percent this year, the worst performer among the five industry groups of the Shanghai Composite, after the government raised down payment and suspended loans for third-home purchases.
“Valuations of property stocks are low,” said Shen Aiqin, an analyst at GF Securities Co. in Guangzhou, who has an “overweight” rating on the property industry. “As investors turn more optimistic about the economy, these cyclical stocks such as developers are what investors buy aggressively.”
Chinese banks extended 595.5 billion yuan ($89 billion) in new local-currency loans last month, the People’s Bank of China said today. That compared with the median 500 billion yuan forecast in a Bloomberg News survey of 18 economists. M2, the broadest measure of money supply, rose 19 percent in September from a year earlier, the central bank added. That compared with economists’ 18.9 percent median estimate.
Low Valuations
China will become “extremely cautious” in raising interest rates in order to prevent hot money inflows and to control the pace of yuan appreciation, Zhang Monan, a researcher with the State Information Center, wrote in a commentary published in the China Securities Journal newspaper today.
Anhui Conch paced the advance for cement produces, rising 4 percent to 25.78 yuan, the biggest gain since Aug. 5. Gansu Qilianshan Cement Group Co. added 3.4 percent to 18.97 yuan. Tangshan Jidong Cement Co. advanced 5.3 percent to 24.28 yuan.
China will start trials of a program to promote sales of construction materials, focusing on cement, in rural areas, the Ministry of Housing and Urban-Rural Development said yesterday after the market closed.
SAIC, China’s largest carmaker, surged 4.7 percent to 19.84 yuan. FAW Car Co., which makes passenger cars in China with Volkswagen AG, gained 5.1 percent to 21.85 yuan.
Wholesale deliveries of passenger cars rose 19.3 percent to 1.21 million, accelerating from 18.7 percent in August, the China Association of Automobile Manufacturers said in an e- mailed statement yesterday.
Consumer Stocks
Kweichow Moutai Co., China’s biggest producer of baijiu liquor by market value, led consumer stocks lower on concern recent gains were excessive. An index tracking consumer staples producers fell 1.8 percent, the most since Sept. 29 and the biggest loss among the CSI 300’s 10 industry groups. The consumer gauge has rallied 4.9 percent this year, compared with a 10 percent loss by the broader measure.
Kweichow Moutai dropped 3.4 percent to 161 yuan. The stock last week climbed to its highest level in 10 months. Wuliangye Yibin Co., the second biggest, lost 3.2 percent to 33.15 yuan. Tsingtao Brewery Co., the nation’s second-largest brewery by volume, slid 4 percent to 36.97 yuan.
Asia’s Worst
The Shanghai Composite is Asia’s worst performer this year, with a 13 percent decline through yesterday as the government boosted measures to slow the economy and cool property prices. At the same time, Indonesia’s Jakarta Composite Index rallied 40 percent, Thailand’s SET Index jumped 33 percent and Malaysia’s FTSE Bursa Malaysia KLCI Index rose 17 percent.
China stocks will extend their rally as investors increase purchases in a market that lagged behind gains in Asia, according to Templeton Asset Management Ltd.’s Mark Mobius.
The Shanghai index’s rise above its 200-day moving average is a “positive sign” that signals further gains for the benchmark gauge, according to Schaeffer’s Investment Research.
The moving average may climb to April highs after the Chinese stock gauge exceeded the average for the first time in about six months yesterday, said Ryan Detrick, a Cincinnati- based analyst who studies chart patterns to predict prices at Schaeffer’s Investment. The 200-day moving average rose as high as 3,097 in April, according to data compiled by Bloomberg.
--Zhang Shidong. Editor: Allen Wan, Richard Frost
http://jodnet.blogspot.com
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