China Stocks in 3-Day Rally

Chandrasekhar Atreya
21 Jul, 2010
New York City

Stocks in China region rallied for the third day in a row. State-owned companies first half profit surges 62%. China pledges to develop clean energy. Initial public offering in China raised record amount in the first half. China lifts the ban on yuan-dominated brokerage accounts in Hong Kong.

[R]5:00 PM Hong Kong, China – Stocks in China region rallied for the third day in a row. State-owned companies first half profit surges 62%. China pledges to develop clean energy. Initial public offering in China raised record amount in the first half. China lifts the ban on yuan-dominated brokerage accounts in Hong Kong.[/R]

China stocks rose for the third day, largest 3-day gain after government’s plan to develop cleaner energy gave a boost to investor sentiments. Stocks in Hong Kong also rose.

The Hang Seng Index in Hong Kong gained 1.1% or 222.64 to close at 20,487.23. The CSI 300 Index gained 0.21% or 5.83 points to close at 2,747.33.

Chinese state owned enterprises reported profits of 543 billion yuan in the first half of the year up 62% from a year earlier.

China has approved plans to build a nuclear power plant in the southwestern region of Guangxi, state media reported Monday, as Beijing makes good on a pledge to boost renewable energy sources.

The first phase of the project in Fangchengchang city will involve investing 24 billion yuan in two Chinese made 1.08 gigawatt reactors, the People’s Daily said citing government sources. The CPR reactors have been designed by China Guangdong Nuclear Power Company based on foreign technology. The People’s Daily said 80% of the materials used to make the reactors were produced in China.

“The government will submit plans to develop cleaner energy like nuclear power and gas from unconventional sources between 2011 and 2020 to the cabinet for approval, said Jiang Bing, head of the National Energy Administration’s planning and development wing in Beijing today.

Chinese companies numbering more than 170 have tapped the nation’s financial markets with IPO to tap the most this decade in the first half of the year, according to China’s regulator.

Companies raised 215.3 billion yuan from IPOs, said the China Securities Regulatory Commission’s Director General, Tong Daochi, at a conference in Shanghai. The amount does not include July IPO sale of Agricultural Bank of China Ltd in Shanghai.

China’s central bank and the Hong Kong Monetary Authority signed an agreement Monday that lifts a ban on yuan-denominated brokerage accounts, insurance and other financial products and services in Hong Kong.

Conquest Mining Ltd says it has received interest from two Chinese smelter companies for product from its Mt Carlton gold, silver and copper project in North Queensland. Executive Chairman Jake Klein said the company was working to formalize a long-term contract in the next three to four months.

Conquest said it had provided detailed new concentrate specifications to 14 Chinese smelter companies interested in signing long term supply contract. The company has short-listed six of these firms, two of which had already undertaken due diligence visits to Australia.