China stocks recover, HK market extends fall
Sunday, 17 January 2010
HONG KONG/SHANGHAI, Jan 15 (Reuters): China's key stock index ended 0.3 per cent higher Friday, with property issues strong on earnings and bonus share plans and after improved foreign direct investment (FDI) data for December.
The Shanghai Composite Index ended at 3,224.152 points, eking out a 0.9-per cent weekly gain. The market was hit by heavy selling earlier this week after the Chinese central bank surprised by raising the proportion of deposits that banks must hold in reserve.
Gaining Shanghai A shares outnumbered losers 549 to 321, while turnover eased to 151 billion yuan from Thursday's 168 billion yuan.
Bolstering sentiment was news that China attracted $12.1 billion in inbound foreign direct investment in December, up 103 per cent from a year earlier, suggesting its robust economic recovery was on track.
Property shares were strong, with Wolong Real Estate Group, one of the most actively traded Shanghai stocks, rising its 10 per cent daily limit to 16.97 yuan after saying its net profit for 2009 rose 33.27 per cent.
The company also said it planned to offer investors generous eight-for-10 bonus shares plus a 0.1 yuan per share pre-tax cash dividend, pending shareholder approval.
The Shanghai Property Index was up 1.83 per cent at 4,423.553 points. It has lost 11 per cent since December, amid an official clampdown to prevent asset bubbles via steps to cool the property market. Property industry heavyweight China Vanke advanced 1.1 per cent to 10.14 yuan.
"The property sector dropped so much but has begun to stabilise and the index is expected to be rangebound next week," said Chen Huiqin, senior analyst at Huatai Securities in Nanjing.
Analysts said investor sentiment had partly recovered from central bank tightening. The index was seen moving between its 125-day moving average of 3,117 points to around 3,350 points.
Financial shares were mixed, with the top lender Industrial and Commercial Bank of China edging down 0.2 per cent to 5.08 yuan.
China Pacific Insurance Group, the country's third-biggest life insurer, climbed 1.45 per cent to 24.42 yuan after saying life insurance premium income in 2009 reached 67.6 billion yuan, up eight per cent from 66.1 billion yuan in 2008.
Hong Kong shares closed down 0.29 per cent by Friday as profit-taking on certain stocks offset gains in technology counters including Foxconn, which rose after bellwether Intel Corp reported a quarterly profit that beat expectations.
The Shanghai Composite Index ended at 3,224.152 points, eking out a 0.9-per cent weekly gain. The market was hit by heavy selling earlier this week after the Chinese central bank surprised by raising the proportion of deposits that banks must hold in reserve.
Gaining Shanghai A shares outnumbered losers 549 to 321, while turnover eased to 151 billion yuan from Thursday's 168 billion yuan.
Bolstering sentiment was news that China attracted $12.1 billion in inbound foreign direct investment in December, up 103 per cent from a year earlier, suggesting its robust economic recovery was on track.
Property shares were strong, with Wolong Real Estate Group, one of the most actively traded Shanghai stocks, rising its 10 per cent daily limit to 16.97 yuan after saying its net profit for 2009 rose 33.27 per cent.
The company also said it planned to offer investors generous eight-for-10 bonus shares plus a 0.1 yuan per share pre-tax cash dividend, pending shareholder approval.
The Shanghai Property Index was up 1.83 per cent at 4,423.553 points. It has lost 11 per cent since December, amid an official clampdown to prevent asset bubbles via steps to cool the property market. Property industry heavyweight China Vanke advanced 1.1 per cent to 10.14 yuan.
"The property sector dropped so much but has begun to stabilise and the index is expected to be rangebound next week," said Chen Huiqin, senior analyst at Huatai Securities in Nanjing.
Analysts said investor sentiment had partly recovered from central bank tightening. The index was seen moving between its 125-day moving average of 3,117 points to around 3,350 points.
Financial shares were mixed, with the top lender Industrial and Commercial Bank of China edging down 0.2 per cent to 5.08 yuan.
China Pacific Insurance Group, the country's third-biggest life insurer, climbed 1.45 per cent to 24.42 yuan after saying life insurance premium income in 2009 reached 67.6 billion yuan, up eight per cent from 66.1 billion yuan in 2008.
Hong Kong shares closed down 0.29 per cent by Friday as profit-taking on certain stocks offset gains in technology counters including Foxconn, which rose after bellwether Intel Corp reported a quarterly profit that beat expectations.