|
China's shares closed up yesterday as investors browsed for bargains among small capitalized stocks and metal firms, hoping the government will announce new policies to support the market, brokers said.
Shanghai's composite index gained 17.09 points to 1,496.16. Shenzhen's shares climbed up 39.34 to 3,031.45.
Hard currency B shares also gained grounds.
Shanghai's B share index rose 0.94 percent to 127.53 points while Shenzhen's was up 0.87 percent at 207.37. Hard currency B shares are open to foreigners and Chinese.
Markets cautiously welcomed news that top securities regulator Shang Fulin had vowed to formulate rules and tighten supervision to further reform and open up the markets in 2003.
"The news strengthened investors' confidence and some of them began to favor small companies in the afternoon before the Spring Festival," said Orient Securities analyst Duan Kai.
Small-cap Jinli Technology (Agricultural) Co, a high-tech agricultural products maker based in the Central province of Hunan, was the biggest A share gainer in Shanghai, climbing its 10 per cent daily limit to 17.71 yuan (US$2.2).
Analysts said the market could extend its mild rally after the holidays, when it will be closed from January 30 to February 7 for the Lunar New Year, or Spring Festival. Trade resumes on February 10.
"We expect the benchmark Shanghai composite index to hover around 1,500 before the Spring Festival and trend up after the holiday," Huatai Securities analyst Zhou Lin said.
China's markets have slumped nearly 35 percent since their peak in June 2001 due to a slew of negative factors, including poor corporate earnings, frequent A-share initial public offerings and an extended crackdown on market irregularities.
But share prices have climbed 12 percent since the start of 2003, buoyed by hopes the government could unveil measures to support the markets after Shang toured the Shanghai and Shenzhen bourses in early January.
In December, Shang replaced Zhou Xiaochuan, who was appointed governor of the central People's Bank of China. Investors had awaited his first policy address for insights into future policy.
Analysts said markets got a some encouragement.
Steelmaker Beijing Shougang Co, which said in October it expected a 50 percent rise in 2002 net profits, was one of the biggest A share gainers, rising 5.3 percent to 6.51 yuan (US$0.78).
China's third-largest aluminium oxide producer, Shandong Aluminium Co, partly owned by Hong Kong-listed Aluminum Corp of China, was one of the top A share gainers in Shanghai with a rise of 5.11 percent to 8.85 yuan (US$1.07).
In the B share markets, punters continued to buy into loss makers which had outperformed the market in the recent rally.
China Textile Machinery Co, which lost money in 2000 and 2001 but predicted profits in 2002, was the second largest B share gainer in Shanghai, ending up 2.52 percent at US$0.57.
On the foreign exchange market in Shanghai, China's yuan ended unchanged at a strong 8.2768 per US dollar, buoyed by ample dollar supply.
The yuan was sandwiched in a tight band between 8.2767 and 8.2769, near the firm end of a narrow trading range of 8.2760 and 8.2800 the People's Bank of China usually enforces.
Turnover was heavy at US$880 million, up from Friday's US$670 million.
"The yuan moved narrowly at high levels today as it was still supported by ample dollar supply," said a US bank dealer.
The yuan is not fully convertible under the current account and its movements within the government-set trading range is basically decided by China's trade performance.
Dealers said the yuan would continue to move near the firm end of its longstanding 40-notch trading range ahead of the week-long lunar new year holiday.
(China Daily January 28, 2003)
|
