Shanghai stocks gained this morning, recovering a little ground after yesterday's steep plunge.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, added 0.69 percent, or 31.92 points, to 4,669.73 at 11:30am.
Gainers in the Shanghai market outnumbered losers 621 to 196 while 16 were unchanged.
The Shenzhen Composite Index, which covers the smaller mainland stock market, increased 0.97 percent, or 13.02 points, to 1,348.98.
The Shanghai index tumbled 7.19 percent yesterday while the Shenzhen index slid 6.85 percent.
Real estate developers performed strong this morning thanks to a rising yuan.
China Vanke Property Co, the nation's biggest developer, gained 2.90 percent, or 0.74 yuan, to 26.29 yuan (US$3.66) while Gemdale Property Co, a Shenzhen-based developer, surged 6.23 percent, or 2.60 yuan, to finish the session at 44.34 yuan.
The yuan traded at 7.1979 as of 11:25am in Shanghai. It soared to a post-revaluation high of 7.1963 yesterday.
China's currency has strengthened 1.4 percent this year, on course for the biggest monthly advance since the end of the peg to the US dollar in July 2005 as the government seeks to curb inflation.
Coal producers also eased from yesterday's slump after figures showed fuel prices had jumped.
Xishan Coal, a producer based in the northern province of Shanxi, rose 0.86 percent, or 0.50 yuan, to 58.40 yuan. China Shenhua Energy Co, the nation's largest coal producer, added 1.64 percent, or one yuan, to 61.80 yuan.
China's prices for power-station coal rose as much as six percent in December from the previous month and may extend gains in January after snowstorms have disrupted supplies.
The price of thermal coal climbed as much as 30 yuan to between 520 yuan and 530 yuan a metric ton at the end of December at Qinhuangdao, China's largest coal port, the National Development and Reform Commission said yesterday.
Elsewhere, China Petroleum & Chemical Corp's parent China Petrochemical Corp plans to boost oil processing by seven percent to 178 million metric tons this year to meet rising domestic demand, the commission said yesterday. China Petroleum, Asia's biggest oil refiner, also known as Sinopec, added 0.82 percent, or 0.14 yuan, to 17.19 yuan.
Brokers were also mixed in the early session today. Citics Securities inched up 0.23 percent, or 0.16 yuan, to 68.58 yuan while Haitong Securities lost 0.31 percent, or 0.14 yuan, to 44.65 yuan.
China's brokerages will be allowed to manage assets for individual clients for the first time as securities companies aim to be less reliant on trading income in a stock market that has dropped 20 percent from its October record.
The China Securities Regulatory Commission made the announcement in a set of draft rules published on its website late last night. The watchdog is seeking comments from the public.
China's brokerages currently rely on stock trading commissions, share sale commissions and proprietary trading to earn profits. Managing wealthy client's assets adds another revenue stream and may boost the profitability of the brokerages.
(Shanghai Daily January 29, 2008)
