Stocks advance as power firms report profit jump
(Shanghai Daily)Updated: 2007-03-07 14:21 Chinese mainland's stocks rose for a second day, led by brokerages on speculation a market rebound from the steepest slide in a decade will boost revenue, Bloomberg said today.
China Huaneng Group and China Datang Corp, advanced after Xinhua news agency said their 2006 profits jumped.
"Brokerages are preferred stocks in a bull market, as bigger trading values will add to their broking revenue," said Zhao Zifeng, who oversees the equivalent of US$1.1 billion at China International Fund Management Co in Shanghai. "The power companies still present opportunities, as the worst time for the power industry is over."
The Shanghai Composite Index, which tracks the bigger of domestic stock exchanges, gained 2.2 percent to 2,901.13 as of the noon break.
The Shenzhen Composite Index, which covers the smaller one, rose 2 percent to 745.76.
The measure has risen 5.1 percent since February 27, when it slumped 9.2 percent amid concern the government would crack down on investments with borrowed money.
Citic Securities, the nation's biggest publicly traded brokerage, jumped 3.51
yuan (46 US cents), or 9.5 percent, to 40.40 yuan. The shares climbed 4.7
percent yesterday after the China Securities Journal, a publication affiliated
with Xinhua, said the brokerage will sell shares in Hong
Kong to become the first securities company to list outside the mainland.
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