Chinese shares rebounded slightly in low turnover on Friday as investors began to regain confidence following reports of imminent market-friendly policy announcements.
The key Shanghai Composite Index, which covers both A and B shares, rose 49.03 points, or 1.14 percent to 4,348.54. The Shenzhen Component Index edged up 169.42 points, or 1.08 percent, to 15,823.88.
Next week, during the two annual sessions of the National People's Congress (NPC) and National Committee of the Chinese People's Political Consultative Conference (CPPCC) -- NPC deputies and CPPCC members affiliated with the securities regulatory commission will submit proposals seeking to lower transaction costs, the China Securities Journal reported on Friday.
Shang Fulin, chairman of the China Securities Regulatory Commission (CSRC), said on Thursday that 2008 would be a pivotal year, during which the commission would reform and improve the capital market and step up market supervision and law enforcement.
Yao Gang, new CSRC vice chairman, told a seminar on Thursday that the risk management of institutional investors should be improved.
Banking heavyweights performed "moderately" well with eased concern over on refinancing, said Lin Songli, analyst at Guangzhou-based Guosen Securities.
Pudong Development Bank extended recent gains, rising 3.03 percent to 42.13 yuan (about US$6). The Shanghai-based commercial lender confirmed on Wednesday that it would sell no more than 800 million additional shares, fewer than the earlier rumored 1 billion.
The Industrial and Commercial Bank of China, the nation's biggest commercial bank, went up 0.93 percent to 6.53 yuan and China Construction Bank, the second-largest, rose 0.64 percent to 7.91 yuan. Most other banks -- including China CITIC bank, China Merchants Bank and the Bank of Communications -- also edged up about 1 percent.
The Chinese currency set yet another new high on Friday when it broke the 7.11 mark against the US dollar. The yuan, as it is also known, has risen more than 2.58 percent against the dollar this year and many experts predict that its total appreciation will exceed 10 percent in 2008.
"The faster yuan appreciation largely checks expectations of soaring inflation and reflects the robust economy," said Lin.
PetroChina, which accounts for around a quarter of the Shanghai index, gained 1.48 percent to 22.57 yuan, but it's still well below its peak of 48.6 yuan when it made its debut on the Shanghai on Nov. 5 last year.
Combined turnover further decreased to 76.3 billion yuan from 117.05 billion yuan on Thursday.
(Xinhua News Agency March 1, 2008)
