China Surplus Rebounds; China Pacific Net Falls

123jump.com Staff
10 Apr, 2009
New York City

Stocks in Shanghai trading closed higher on the speculation of rate cut. Exports declined in March but trade surplus more than tripled from February. Exports in the month fell 17% but imports declined 25% lifting the trade surplus to $18.6 billion. China Pacific Insurance net income plunges.

[R]2:20PM New York, 2:20PM Shanghai – Stocks in Shanghai trading closed higher on the speculation of rate cut. Exports declined in March but trade surplus more than tripled from February.[/R]

Stocks in Shanghai trading gained on yet another expectation of rate cut. Banks and real estate developers were the focus of speculators. A steady rise in metals also lifted commodities linked stocks.

The Shanghai Composite Index added 2.7% or 64.35 to 2,444.23 and the CSI 300 Index increased 3.1% to 2,595.53. The indexes are up 34% for the year after losing nearly 70% in 2008.

Markets in Hong Kong were closed.

Exports declined for the fifth month in a row in March, giving strength to the voices that are looking for another rate cut. Exports in the month declined 17.1% to $90.29 billion and imports fell 25.1% to $71.73 billion. Trade surplus in March rose to $18.56 billion from $4.84 billion in February when exports fell 25.7%.

Yuan traded nearly unchanged against dollar after the release of the data at 6.833 yuan to a dollar.

The third largest insurance company in China, China Pacific Insurance Group Company reported net income declined to 1.3 billion yuan or $190 million or 0.17 yuan a share compared to 6.9 billion yuan or 1.12 yuan a share.

The insurance company through its subsidiaries owns stakes in property and life insurance companies. The two subsidiaries have a branch network of 5,500 offices. The company has 185,000 insurance agents and 18,400 employees engaged in direct insurance selling.

China Pacific dropped 0.68 or 4% to 18.17 yuan.

Gainers & Losers

Real estate stocks surged on speculation that interest rate cut. Poly real Estate rose 3.3% to 22.75 yuan.

Metals and commodities related stocked gained. Copper prices closed above $2 a pound price and crude oil price rose $2.86 to $52.24 a barrel.

Jiangxi Copper surged 10% to 25.72 yuan and Petro China added 1,7% to 11.48 yuan.

Xinjiang Goldwind Science & Technology Company soared 9.6% to 42.95 yuan on the hopes that China target to increase alternative energy use to 10% by 2010 from the current 7.5%.