Top Biz News

Equities rebound, led by commodities

(China Daily/Agencies)
Updated: 2009-12-24 08:05

China's benchmark stock index rebounded from a seven-week low, led by commodity and brokerage shares, on speculation that the nation's economic growth next year will spur demand for raw materials and boost trading.

"The recovery is strong and the economy is very attractive," said Hugh Simon, co-manager of the $1.1 billion Dreyfus Greater China Fund.

The Shanghai Composite Index added 23.26, or 0.76 percent, to 3073.78 at the close, after changing direction at least 10 times. The CSI 300 Index climbed 0.94 percent to 3336.48.

The index has dropped 3.8 percent this month as a flood of share sales diverted funds from existing equities and the government raised down payments on land purchases.

China Coal Energy Co, the country's second largest fuel producer, gained 0.8 percent to 12.65 yuan. Jiangxi Copper Co, the nation's biggest producer of the metal, gained 1.2 percent to 36.31 yuan, halting a six-day, 15 percent drop.

CITIC Securities Chief Economist Zhu Jianfang said at a forum in Shanghai yesterday that China's economy may expand 10.1 percent next year as exports and domestic consumption contribute more to growth.

Haitong Securities, the country's second largest listed brokerage by market value, rose 2.8 percent to 17.8 yuan, while CITIC Securities, the biggest, added 0.7 percent to 28.41 yuan.

Goldman Sachs raised its share-price estimate for the two companies by 8.3 percent and 18 percent, respectively.

Beijing Capital Development Co fell 2.9 percent to 19.19 yuan on concern the government may step up measures to curb speculation.

A measure of real estate stocks on the Shanghai Composite has slumped 11 percent this month, the most among five industry groups.

Hang Seng firm

Hong Kong stocks rose, reversing declines, as exporters gained amid signs the US economy is improving.

"There's a bit of year-end window-dressing going on," said Kenny Tang, an analyst at Redford Securities Co in Hong Kong. "Exporters and manufacturers are catching up on the back of improving economic data."

The Hang Seng Index advanced 1.12 percent to close at 21328.74, after dropping as much as 0.4 percent and flipping between gains and losses at least 27 times. Shares fell in the morning session, led by developers, after the 21st Century Business Herald reported that China would limit land sales for development next year.