Stocks up on bullish China and US figures
The Shanghai Composite Index rose 1.41 percent on Friday to 2317 points, hovering above the 2300 level for the fourth day this week, after China and the United States released bullish economic data.
The increase was driven by the release of China's 2012 GDP data, real estate news from Shenzhen and supportive economic figures from the US.
China's GDP growth was 7.8 percent in 2012, above analysts' expectations for growth of 7.5 percent.
GDP increased 7.9 percent in the fourth quarter of last year - ending a seven-quarter decline - and up from 7.4 percent in the third quarter and 7.6 percent in the second quarter.
The data helped confirm the view that China is recovering from the economic slowdown seen last summer, and is good news for the Chinese stock market, said Li Daxiao, head of research at Yingda Securities.
The government also said that industrial production increased 10.3 percent year-on-year in December, while retail sales were up 15.2 percent year-on-year the same month.
Tomomichi Akuta, an analyst at Mitsubishi UFJ Research and Consulting in Tokyo, said the figures confirm the view that China will not see a hard landing, that the Chinese economy will be more stable in 2013 than it was last year, and that it can resume sustainable growth between 7 and 8 percent.
Asian stock markets may also see gains on the back of China's GDP data, the analyst said.
Meanwhile, the real estate sector gained 3.18 percent in afternoon trading on news that a property development plan in Shenzhen - a major business hub in South China - has been approved by the Ministry of Land and Resources.
The Shenzhen stock index rose 1.32 percent to 9432.3, while the Hang Seng China Enterprises Index of mainland companies traded in Hong Kong rose 2.09 percent, closing at 12105.71 points.
The market was also supported by US government data on housing starts and the unemployment rate. Analysts said the US figures showed a continued, although slow, recovery.
huangtiantian@chinadaily.com.cn
(China Daily 01/19/2013 page9)
