Shanghai Home Price and Sales Increase Lift China Indexes

Chandrasekhar Atreya
21 Dec, 2010
New York City

Stocks in China rose as tensions in the Korean peninsula receded and property prices stayed buoyant. New homes sales in Shanghai register double digits growth in volumes and price from a week earlier. Hong Kong

[R]5:00 PM Hong Kong, China – Stocks in China rose as tensions in the Korean peninsula receded and property prices stayed buoyant. New homes sales in Shanghai register double digits growth in volumes and price from a week earlier. Hong Kong’s third quarter GDP expands close to 7%.[/R]

Stocks in Shanghai and Hong Kong surged after tensions in Korean peninsula receded and home sales increase more than expected in Shanghai.

The Shanghai Composite Index surged 1.79% or 51.20 to close at 2,904.11 and the CSI 300 Index soared 2.23% or 70.85 to close at 3,249.51.

The Hang Seng Index in Hong Kong rose 1.57% or 354.78 to close at 22,993.86.

Automakers in China are looking to introduce cars that appeal emerging middle class and cost less than $10,000 or 70,000 yuan. The demand for cars in smaller cities is rapidly rising as family incomes grow and people seek out smaller cars. The small car segment is expected to jump to 40% of total sales in China in 2011.

The week-long China (Guangzhou) International Automobile Exhibition saw the introduction of at least three cars that were designed for the domestic market only and sell at less than $10,000 retail price.

New home sales in Shanghai rebounded last week to register double-digit growth in volume and price from a week earlier.

A total of 273,000 square meters of new homes, excluding those built for relocated residents under urban redevelopment plans, were sold across the city during the last week, for a weekly rise of 19.2% with the average prices rising 10.2% to 23,421 yuan per square meter, Shanghai Uwin Real Estate Information Services Co said on Monday.

Local Chinese governments should continue to implement the measures in place to curb property speculation, the land regulator said as it vowed to keep land prices reasonable.

China Unicom said on Monday it added 1.12 million new 3G subscribers in November to take the total to 12.78 million of 3G subscribers.

China Mobile, the world’s largest mobile carrier, said on Monday it added more 3G users in November to account for half the country’s 3G user base.

In November, China Mobile added 1.85 million 3G users to total 18.83 million 3G users, both phone and data card, half of the nation’s total 3G user base.

China’s lottery sales in November rose 36.9% from a year ago to 16.02 billion yuan, the Ministry of Finance said on Monday.

The total sales of lottery tickets till November in 2010 reached 149.06 billion yuan, for an annual increase of 25.1%, the ministry said on its Web site. According to regulations on Lottery Management in China, money raised through lotteries is divided into three parts, namely the jackpot, lottery management fees, and lottery public funds.

Hong Kong’s gross domestic product expanded 6.8% in real terms in the third quarter of this year from a year ago quarter, its Census and Statistics Department said on Monday.

Net output in all the service activities rose by 6.8% in real terms in the third quarter from a year ago, after rising 6.2% in the second quarter.

Stock Movers

China Vanke Co surged by the daily limit of 10% after a survey showed that property sales rose in most cities across China and closed at 9.13 yuan. Poly Real Estate also surged 10% to 13.51 yuan.

China Shenhua Energy Co led the gains for energy firms after the company’s reserves got a boost of 21% with acquisitions. Stock surged 6% to close at 25.77 yuan. Datong Coal Industry Co rose 2.51% to 22.20 yuan.

Cosco Shipping Co surged after the company’s stock was upgraded by Shenyin & Wanguo.

Banks rebounded modestly. China Construction Bank edged up 0.4% to 4.68 yuan and China Merchants Bank added 1% to 13.09 yuan. Industrial and Commercial Bank gained 0.24% to 4.20 yuan.