Money

Market rises after higher profit reports

By Zhang Shidong (China Daily)
Updated: 2011-03-29 10:35

A branch of China Minsheng Banking Corp in Nanjing. The lender's shares rose 2.61 percent on Monday. [Photo / China Daily]

SHANGHAI - Stocks on the Chinese mainland advanced for a second day after companies from Yanzhou Coal Mining Co to China Minsheng Banking Corp reported higher profit.

Minsheng jumped the most since Nov 3 after profit surged 45 percent. Yanzhou Coal advanced to a record after the company more than doubled net income.

"Earnings growth is supporting the rally in the market and sentiment is turning bullish," said Tu Jun, a strategist at Shanghai Securities Co.

The Shanghai Composite Index rose 0.21 percent to 2984.01 at the 3 pm close on Monday.

Companies on the Shanghai Composite trade at 14 times estimated earnings, compared with about 16 times at the end of last year, according to data compiled by Bloomberg.

Minsheng added 2.61 percent. The lender said net income rose to 17.6 billion yuan ($2.68 billion) from 12.1 billion yuan a year earlier. That exceeded the 15.86 billion yuan average estimate of 18 analysts surveyed by Bloomberg.

Related readings:  Chinese shares close mixed Monday  Industrial Bank profits rise 39% in 2010  Minsheng in $3b offering aimed at China Life, others  Yanzhou Coal boosts its investment Down Under

Huaxia Bank Co gained 0.40 percent to 12.54 yuan after saying net income for 2010 rose 59 percent from a year earlier to 5.99 billion yuan.

An index of energy companies climbed 0.8 percent, the most among the CSI 300's 10 industry groups.

Yanzhou Coal jumped 5.30 percent to 34.94 yuan. The company said full-year net income more than doubled to 9.3 billion yuan in 2010.

China Shenhua Energy Co advanced 1.37 percent to 29.59 yuan after the company said net income for 2010 rose to 38.1 billion yuan last year on increasing prices of the fuel.

Chinese industrial companies' profits jumped 34 percent in the first two months of the year, underscoring the strength of the world's fastest-growing major economy amid higher interest rates and lending curbs.

CITIC Securities Co said in a report on Monday that it's "cautious" about China's stocks in the second quarter as oil prices are likely to stay high and growth may slow in Europe.

Western Mining Co advanced 1.88 percent to 18.38 yuan.

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