Shanghai Stocks Rally 1.4% Ahead of Plenary Meeting

Devan Biswas
04 Mar, 2011
New York City

China region stocks gained as investors focused on the meeting of lawmakers, bankers and policymakers beginning tomorrow for the next ten days. China is looking to drive economic growth in the next five years through higher consumption.

[R]5:00 PM Hong Kong – China region stocks gained as investors focused on the meeting of lawmakers, bankers and policymakers beginning tomorrow for the next ten days. China is looking to drive economic growth in the next five years through higher consumption.[/R]

Stocks in China region closed higher after a rally in New York. Stocks gained after U.S. weekly jobless claims declined to the level last seen in May 2008 and service industry expanded in February. Also, retailers reported better than expected same store sales.

The National People’s Congress is scheduled to begin its 10-day meeting from tomorrow and focus on inflation control and economic expansion driven by consumption.

The Shanghai Composite Index added 39.33 or 1.4% to 2,942.31 to and CSI 300 index increased 1.5% to 3,270.67.

Hang Seng index added 1.2% or 286.44 to close at 23,408.86.

Banks, property developers and resource linked stocks led gainers in trading in Shanghai and in Hong Kong.

Mainland Chinese banks were in favor in Hong Kong trading as several banks trade at a small premium to their book values.

Stock Movers

Air China increased 2.7% to 11.78 yuan.

Anhui Conch Cement Co. increased 3% to 35.95 yuan after UBS lifted its stock price target 28% to 61.60 yuan.

BYD Co Ltd decreased 2% after the car maker said February sales were 50% lower to sales in January.

China Life Insurance Co. increased 1.4% to 22.01 yuan after the company Chairman Yang Chao estimated improved business in the current year compared to 2010 and the company is seeking permission to invest in affordable housing.

China plans to add as many as 35 million affordable new homes in the next five years to 2015.

China Construction Bank Corp increased 0.4% to 4.96 yuan and Industrial & Commercial Bank of China gained 1.2% to 4.35 yuan.

China CSSC Holdings Ltd declined 5% to 75.95 yuan and said it will raise as much as 4 billion yuan.

China Vanke Co. gained 1.8% to 8.33 yuan and the largest home builder in China said February sales rose 142% from a year ago to 6.1 billion yuan. The company also sold 0.55 million square meters of residential space, 160% increase from a year ago.

Tencent Holdings increased 4.4% and lifted the broader index in Hong Kong trading.

Qingdao Haier Co. declined 2% to 29.79 yuan and Dongfang Electric Corp gained 0.9% to 34.62 yuan.