Top Biz News
Equities rebound, led by financials
(China Daily/Agencies)
Updated: 2009-12-15 08:08
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Mainland benchmark stock index rebounded from losses, led by oil and financial companies, after Abu Dhabi provided $10 billion to prevent Dubai's Nakheel PJSC from a default.
Sinopec, Asia's biggest oil refiner, surged 8.4 percent to 13.7 yuan ($2.01) and Industrial & Commercial Bank of China Ltd, the nation's biggest bank, gained 1.7 percent to 5.32 yuan.
"The Dubai debt repayment has reassured investors that there won't be a second global financial crisis," said Wang Zheng, a fund manager at Jingxi Investment Management Co. "The market is reacting to the government aid very positively."
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Still, about five stocks fell for every three that rose on the benchmark gauge on concern a flood of share sales will draw funds away from the nation's existing equities. Investors may subscribe to more than 1 trillion yuan worth of shares in 10 initial public offerings this week, the China Business News said yesterday.
Handan Iron & Steel Co lost 2.7 percent to 5.35 yuan. Hisense Electric Co, a manufacturer of flat-panel televisions, slid 3.1 percent to 23.25 yuan.
Hang Seng firm
The Hang Seng Index added 0.8 percent to close at 22085.75. It fell as much as 1.6 percent in the morning session.
"This serves as an excuse for a rally as the Middle East has posted concerns for some investors," said Chris Leung, a Hong Kong-based portfolio manager at Taifook Asset Management Ltd, which oversees $400 million. Leung said he had rebalanced his portfolio to "take small bets on a year-end rebound".
The Hang Seng China Enterprises Index climbed 0.6 percent to 13049.34.
