Shanghai Stocks Rally; Property Developers Sales Expand

Chandrasekhar Atreya
13 Jan, 2011
New York City

Shanghai stocks rally led by oil refiners and airlines on rising yuan and crude oil price. Property developers

[R]5:00 PM Hong Kong, China – Shanghai stocks rally led by oil refiners and airlines on rising yuan and crude oil price. Property developers’ sale rise despite tighter lending conditions. Poly Real Estate said 2010 contract sales soared 53% and Gemdale Corp sales rose 22%. Banks in Shanghai loan disbursements declined 9%.[/R]

China shares traded higher in the day led by oil refiners on of higher crude oil prices and airlines as the yuan appreciates. Sinovel Wind Group Co public offering closed below its offer price in Hong Kong.

The Shanghai Composite Index gained 0.22% or 6.32 to close at 2,827.63. The CSI 300 Index was down 0.05% or 1.45 to 3,140.89.

The Hang Seng Index in Hong Kong added 0.47% or 113.37 to 24,238.98.

China’s two largest real estate developers reported on Wednesday that their property sales grew by double-digits in 2010 despite two rounds of tightening measures imposed by the central government to cool the market.

Poly Real Estate group Co, China’s second-largest publicly traded developer, said the value of its contract sales surged 52.5% to 66.168 billion yuan in 2010. By volume, it rose 30.7% to 6.88 million square meters, the company said in a filing to the Shanghai Stock Exchange.

Shanghai-listed Gemdale Corp sold 2.29 million square meters of new homes across the country in 2010, up 21.6% from 2009. By volume, sales surged 34.6% to 2.83 million yuan, according to a filing with the local stock exchange.

China National Petroleum Corp’s overseas crude oil and natural gas output rose 13.9% in 2010, boosted by new investments in countries including Iraq.

From Central Asia to South America, overseas output reached a record high of 86.73 million tons of oil equivalent, or 1.73 million barrels per day or about 36% of China’s crude imports last year, CNPC said on Wednesday.

Southwest China’s Tibet Autonomous Region witnessed a fast expansion in the non-public sector in the past five years as the regional government introduced measures to boost development.

The non-public sector now makes up 40.6% of Tibet’s gross domestic product and has become an important constituent of the local economy, said Sonam, a member of the Tibet Autonomous Regional Committee of the Chinese People’s Political Consultative Conference.

Banks in Shanghai extended 436.9 billion in yuan-denominated loans in 2010, a drop of 44.6 billion yuan from the previous year, the central bank said on Wednesday.

The decline was a result of China’s tightened monetary policy targeting a 25-month high of inflation and overseas capital inflows. However, loans across the nation rose at least 10% in the year.

Stock Movers

Sinopec Corp gained 2% to 8.53 yuan while PetroChina was up 1.33% to 11.39 yuan.

China Southern Airlines surged 2.9% to 9.74 yuan and rival Air China gained 1.6% to 13.09 yuan.

Shanghai Baosight Software Co surged 7.07% to 27.73 yuan after the State Council released measures to support software sectors development.

Sinovel Wind Group Co fell below its offer price on its debut in Shanghai today. The shares in Sonovel tumbled 9.59% to 81.37 yuan.