|
China's shares ended up more than 2 percent yesterday as investors piled into oversold high-technology counters as markets hovered near their lowest level this year, brokers said.
The benchmark Shanghai composite index, which tracks both A and B shares, went up 38.773 points or 2.81 percent at 1,417.525, while the Shenzhen sub index also gained 66.34 points or 2.14 percent to finish at 2876.89.
Shanghai's hard currency B share index rose 3.65 percent to 116.580 points, while Shenzhen's climbed 2.14 percent to 192.31.
Turnover on the B share markets, open to foreigners and domestic retail investors, was US$18.446 million in Shanghai and HK$67.926 million (US$8.7 million) in Shenzhen.
"In the afternoon session, investors began to buy shares of high-tech firms such as Jiaoda High-Tech, which was severely oversold in the past few weeks," said Guotai Junan Securities analyst Zhu Shengqiu.
"The strength of this afternoon's technical rebound was relatively strong because some investors began to believe the prolonged downtrend was hitting the bottom," he added.
Jiaoda's A shares, now off limits to foreign investors, surged their 10 percent daily limit to 8.32 yuan. Harbin High-Tech and software developer Beijing UF Soft also surged to the 10 per cent limit.
"Buying in high-tech firms followed the recovery of such shares in the US Although not all Chinese high-tech companies' operations improved, we can still see some of them did," said Huatai Securities analyst Chen Huiqing.
Jiaoda High-Tech posted an annual increase of 223 percent per cent in net profit for the first nine months of 2002, and Beijing UF Soft's rose 18.22 percent.
But analysts also said a continued rebound still depended on investor confidence.
"Some investors may sell the shares to take profits tomorrow, but the question is how many. If most investors are confident about the market and hold on to their shares, the rebound could continue a bit longer," Chen added.
Another star performer yesterday was Shanghai property developer Lujiazui, the biggest B share gainer with a rise of 6.47 percent to US$0.675.
Investors bought Lujiazui shares in hope the Shanghai real estate market would boom if the city won its bid to host the 2010 World Expo. A decision is due to be announced on December 4.
(China Daily November 29, 2002)
|
