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BIZCHINA> Top Biz News
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Macro data boost rally on markets
(China Daily/Agencies)
Updated: 2009-10-16 08:03
 Chinese stocks advanced for a third day after new lending expanded in September, home prices increased at the fastest pace in a year and foreign direct investment quickened. Bank of Communications Ltd gained 1.4 percent to 8.87 yuan and SAIC Motor Corp climbed 2.6 percent to 21.21 yuan. China International Travel Service Corp jumped 45 percent to 17.08 yuan on its debut. It raised 2.6 billion yuan through an initial public offering. Zijin Mining Group Co fell 1.7 percent to 9.41 yuan on concern recent gains were excessive. The Shanghai Composite Index rose 9.26, or 0.3 percent, to close at 2,979.79, its highest since Sept 17 and extending this month's 6.9 percent advance. The CSI 300 Index added 0.4 percent to 3,239.64. "The economic situation still supports a continuing rally on the stock market," said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co. "The recovery is certain." Hong Yuan Securities Co, Guoyuan Securities Co and Northeast Securities Co led gains among Chinese brokerages in Shanghai and Shenzhen trading after the three companies said third-quarter profit probably jumped. Hong Yuan Securities, China's first publicly-traded brokerage, advanced 3.5 percent to 20.18 yuan at the close in Shenzhen, its highest since Sept 21. The company said third-quarter net income may rise as much as 420 percent from a year earlier and profit for the first nine months may rise as much as 120 percent. Guoyuan Securities jumped 4.8 percent to 20.26 yuan and Northeast Securities gained 2 percent to 39.2 yuan.
CITIC Securities added 1.8 percent to 27.13 yuan and Haitong Securities climbed 1 percent to 13.94 yuan. "The extremely low earnings base and the rebound in the stock market are the major reasons for brokerages' explosive earnings growth," said Zhan Wei, an analyst tracking the brokerage industry at Huatai Securities in Nanjing. Hang Seng up Hong Kong stocks rose, with the benchmark index extending a 14-month high, as banks climbed after JPMorgan Chase & Co's earnings topped estimates and oil producers gained as crude prices reached a one-year high. The Hang Seng Index advanced 0.5 percent to 21,999.08, its highest close since Aug 7, 2008. The average price of stocks on the measure has risen to 17.6 times estimated earnings from 10.6 times at the start of the year, according to data compiled by Bloomberg. The Hang Seng China Enterprises Index added 0.6 percent to 12,859.71.
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