Strong performances among banks powered Shanghai's key stock
index higher in the morning session today on expectations a
stronger yuan will spur demand for assets in the currency.
The Shanghai Composite Index, which tracks yuan-denominated A
shares and hard-currency B shares, added 0.26 percent, or 14.16
points, to 5,470.70 at 11:30am today.
Losers in the Shanghai market outnumbered gainers 561 to 224 and
64 were unchanged.
But the Shenzhen Composite Index, which covers the smaller
mainland stock market, was down 0.46 percent, or 7.2 points, to
1,549.07.
Minsheng Banking, the nation's only privately-controlled listed
lender, rose 3.68 percent, or 0.57 yuan (7 US cents), to 16.08
yuan. China Merchants Bank Co, the nation's biggest dual-currency
credit-card issuer, climbed 4.14 percent, or 1.70 yuan, to 42.80
yuan.
Bank of Beijing Co, China's biggest city bank, increased 0.96
percent, or 0.21 yuan, to finish the morning session at 22.17 yuan.
The lender said net income last year probably rose more than 50
percent from a year earlier. Net income was 2.1 billion yuan in
2006.
China Vanke, the nation's biggest listed property developer,
gained 2.16 percent, or 0.66 yuan, to 31.21 yuan.
The yuan rose as much as 0.12 percent to 7.2630 against the US
dollar in Shanghai today, the strongest since it ended a link with
the US currency in July 2005.
Airlines also recovered this morning from two turbulent trading
days.
Air China, the world's biggest airline by market value, jumped
2.89 percent, or 0.81 yuan, to close the session at 28.83 yuan.
China Eastern, the country's third largest by fleet size, also
gained 3.21 percent, or 0.63 yuan, to 20.63 yuan.
Airlines have performed poorly since shareholders of China
Eastern vetoed a proposal offered by Singapore Airlines Ltd on
Tuesday.
Shareholders of Shanghai-based China Eastern Airlines vetoed
Singapore Airlines Ltd's bid for a 24 percent stake in the carrier
for HK$7.16 billion (US$918 million) on Tuesday. The rejection
clears the way for Air China Ltd's parent to make a higher
offer.
China National Aviation, Air China Ltd's parent, holder of about
10 percent of China Eastern, said on January 6 that it would make a
counter-bid of at least HK$5 per share if the Singapore deal is
rejected. China Eastern planned to sell new shares to its parent
and the Singaporean investors at HK$3.80 apiece.
Elsewhere, gold producers rose slightly this morning.
Zhongjin Gold Corp, China's largest publicly traded gold miner
by market value, edged up 0.23 percent, or 0.31 yuan, to 133.10
yuan. Shandong Gold Mining Co, the second-largest, inched up 0.46
percent, or 1 yuan, to 218 yuan.
Gold futures rose 1.3 percent to US$893.60 an ounce in New York
yesterday. The price earlier reached US$897.30, the highest ever
for an active contract.
(Shanghai Daily January 11, 2008)
