China Region Stocks Rise; Fear of New Hot Money Supply

Devan Biswas
08 Nov, 2010
New York City

Stocks in China region gained as crude oil traded at a 2-year high and commodities advance. Property developers gained as a flood of new money is expected in the sector after the U.S. adds $600 billion in new money supply.

[R]6:00 PM Hong Kong – Stocks in China region gained as crude oil traded at a 2-year high and commodities advance. Property developers gained as a flood of new money is expected in the sector after the U.S. adds $600 billion in new money supply.[/R]

Stocks in Shanghai and Hong Kong closed higher on the sustained exports and rising fund flows and improved jobs market in the U.S. The release of better than expected U.S. jobs reports lifted the trading sentiment in Japan and in Asia.

Investors are also bracing for the rising capital flows in Hong Kong and Shanghai real estate markets as the U.S. Federal Reserve conducts its money printing program that will add $600 billion in money supply.

The CSI 300 index increased 0.8% to 3,548.57 and Shanghai Composite Index added 0.96% or 30.02 to 3,159.52. Hang Seng Index increased 87.55 or 0.35% to 24,964.37.

U.S. added 151,000 jobs in October as net additions in healthcare, construction and retail sectors helped the net new job creations. However, unemployment in the month hovered at 9.6%, the same it has been for the last six months.

Property developers led the gainers on the expectations of new demand from international investors. Poly Real Estate Group Co soared 2.2% to 15.09 yuan. China Vanke and Hang Lung Properties were also active in Hong Kong trading.

PetroChina Co edged up 1.3% as international price of crude oil reached a 2-year high.

SAIC Motor Corp increased 4% to 20.99 yuan after a local government economist said government is targeting to increase local consumption.