China to Sustain Fast Economic Growth

Darlington Musarurwa
26 Oct, 2009
New York City

China

[R]6:00 AM New York, 6:00 PM Hong Kong- China’s brisk economic growth is expected to continue in the fourth quarter as domestic demand stays robust and banks continue to offer loans. After the close China Citic Bank Corp and China Life Corp report earnings. September copper imports increase as the domestic demand outpaces record output.[/R]

Stocks in Shanghai were little changed and markets in Hong Kong were closed. Commodities prices gained in Shanghai after China reported copper imports increased more than 25% in September to 282,828 metric tons.

Chinese market averages gained led by airlines as crude oil prices fell 0.9% on a rising dollar to $80.50 per barrel.

In Shanghai, the CSI 300 Index rose 0.03% or 0.99 to 3,414.24 and Hong Kong stock market was closed today.

China Economy to Rise 10.6% in Q4

Peoples’ Daily Online reported today China Centre for Economic Researcher projects that the country’s economy is estimated to rise 10.6% in the fourth quarter to December, while the Consumer Price Index is expected to jump 0.5%.

Similarly, Bank of Communications chief economist Lian Ping forecasts investment will rise 30% in 2010 on rising domestic consumption, recovery of overseas markets and more central government-funded projects.

“Adequate liquidity in 2010 will support rapid economic growth,” said Lian.

OCT Properties Q3 Profit Surges

China OCT Properties reported on Saturday that its net profit in the three months ended September 30 rose 56.73% to Rmb133.2 million.

Revenues advanced 28.9% to Rmb1.17 billion from the same period a year earlier.

Gainers & Losers

Chinese airlines rose after crude oil prices dropped 0.9% to $80.5 per barrel. China Southern Airlines Co. and China Eastern Airlines Corp. rose 1%.

PetroChina plummeted 0.8%.

Coal miner Yanzhou Coal advanced 3.3% after the Australian government sanctioned its $3.5 billion takeover of Felix Resources.

China Life Insurance Co. climbed 3.9% ahead of its third quarter results. After the close the insurer reported profit in the third quarter to September increased to Rmb5.95 billion or Rmb0.21 compared to Rmb2.34 billion or RMb0.08.

China Citic Bank Corp said third quarter profit increased to Rmb4.35 billion or Rmb0.11 compared to Rmb4.04 billion or Rmb0.010 a share.

Drug maker China National Medicines Corp. soared 6.8% after reporting third quarter net income advanced 39% to Rmb62.5 million.

Sichuan Western Resources Holding Co. increased 4.3% as net profit rose to Rmb31.4 million in the third quarter ended September 30.