Stock index finishes bullish 2006 on all-time high
By Fei Ya (China Daily)Updated: 2006-12-30 09:57
Bank shares such as the Industrial and Commercial Bank of China and Bank of China increased 65 per cent and 50 per cent in December.
Corporate profit growth, benefiting from the possible new tax policy and new accounting standards starting from 2007, is forecast to be around 25 per cent this year and roughly the same next year.
Meanwhile, the listing of several flagship companies is planned in early 2007, including China Life Insurance in January and Bank of Communications and Ping An Insurance in subsequent months. These offerings are expected to trigger investor interest.
China Merchants Bank Co, the nation's third-biggest publicly traded lender, rose 5.1 per cent to 16.36 yuan (US$2.1) on Friday, pushing the stock's advance to 170 per cent this year.
China Minsheng Banking Corp, the nation's first privately controlled lender, added 4 per cent to close at 10.20 yuan (US$1.3). Its shares have more than tripled this year.
China Petroleum & Chemical Corp, Asia's biggest oil refiner, also known as Sinopec, climbed 70 per cent since October 10, when its parent gave investors 2.8 shares for every 10 held as it converted its non-tradable shares.
Sinopec gained 1.1 per cent to 9.12 yuan (US$1.16) on Friday, extending its gain this year to 96 per cent.
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