Domestic stocks rose this morning, bouncing back above 5,000 points as blue chips across the board continued yesterday's rally.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, jumped 1.69 percent, or 83.64 points, to 5,025.42 at 11:30am today.
Gainers in the Shanghai market outnumbered losers 612 to 139 while 95 were unchanged.
The Shenzhen Composite Index, which covers the smaller mainland stock market, gained 1.30 percent, or 17.38 points, to 1,356.47.
Property developers and banks were among the gainers in the early session on expectations a strengthening local currency will boost demand for yuan-priced assets.
Shanghai Pudong Development Bank Co, the Chinese partner of Citigroup Inc, added 4.12 percent, or 1.95 yuan (26 US cents), to 49.32 yuan. Shenzhen Development Bank Co, controlled by buyout company TPG Inc, rose 3.42 percent, or 1.22 yuan, to 36.94 yuan.
Shanghai Pudong Development Bank, whose shares have gained 126 percent this year, plans to raise six billion yuan selling subordinated bonds to strengthen capital.
The bank will sell one billion yuan fixed-rate bonds and five billion yuan of floating-rate debt in the nation's interbank market on December 27, according to the prospectus. Both bonds are callable and will mature in 10 years.
China Vanke, the nation's biggest property developer, increased 2.66 percent, or 0.74 yuan, to 28.54 yuan while Financial Street, a Beijing developer, sprinted ahead 4.86 percent, or 1.19 yuan, to finish the session at 25.69 yuan.
The yuan rose as much as 0.12 percent to 7.3678 against the US dollar in Shanghai and is set for a third-consecutive gain.
Meanwhile, oil-related stocks also contributed to the rising index this morning.
PetroChina Co, the world's biggest oil company by market value, added 2.20 percent, or 0.65 yuan, to 30.24 yuan while China Petroleum & Chemical Corp, Asia's biggest oil refiner and also known as Sinopec, rose 3.99 percent, or 0.86 yuan, to 22.43 yuan.
China National Petroleum Corp, the parent of PetroChina Co, signed an agreement to expand cooperation with Royal Dutch Shell Plc in Beijing yesterday.
Crude oil yesterday rose 1.3 percent to US$91.24 a barrel in New York after a government report showed that United States inventories declined more than expected as fog delayed the arrival of imports.
China United Telecommunications Corp, which controls the nation's second-largest cell phone operator, rose 1.25 percent, or 0.13 yuan, to finish the morning session at 10.55 yuan.
The company's Hong Kong-listed unit China Unicom Ltd said it added 1.397 million wireless users in November, compared with 1.49 million the previous month.
(Shanghai Daily December 20, 2007)
