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China's A and B shares ended higher yesterday as punters sought solace in the persistently strong auto sector at the height of the results season, but chicken breeder Dajiang slid after warning of a loss, brokers said.
Shanghai's composite index rose by 15.398 points, or 0.95 percent, to 1,631.470. Shenzhen's sub-index climbed by 50.56 points, or 1.49 percent, to 3,433.39.
Shanghai's hard-currency B-share index rose 1.34 percent to 130.156 points, while Shenzhen's was 3.61 percent higher at 232.67 points. B shares are open to Chinese and foreign investors.
Chen Huiqin at Huatai Securities said: "Punters bought heavily into car stocks as they believe China's encouraging economic growth will help support the fledgling but booming industry."
The FAW Car Co, the listed unit of China's leading vehicle maker First Automotive Works, outperformed the overall market by climbing 7.3 percent to 10.02 yuan (US$1.20).
The Shanghai Automotive Co, owner of a fifth of a car plant partly controlled by General Motors, brushed up against its 10 percent daily limit to finish at 11.53 yuan (US$1.38).
Also outperforming markets were financial counters as punters bet that the fast-growing economy would benefit these companies, analysts said.
China Merchants Bank, one of the only four listed lenders on mainland bourses, rose 2.4 percent to 12.58 yuan (US$1.51).
"But investors sold firms with loss expectations to avoid getting drapped," said Chen Huiqin.
The Shanghai Dajiang Group Co predicted a second year of losses for 2002 under Chinese accounting standards. Under international standards, the company had bled red ink since 2000.
Dajiang was the biggest B-share decliner and most actively traded counter in Shanghai, falling 1.85 percent to 42.4 US cents with 9.5 million shares changing hands.
(China Daily April 16, 2003)
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