Shanghai stocks rebounded above 5,000 points today thanks to the biggest gain in 11 trading days after blue chips enjoyed a rally across the board.
The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, jumped 4.16 percent, or 199.94 points, to 5,003.33 at 3pm today.
The Shenzhen Composite Index, which covers the smaller mainland stock market, climbed 3.06 percent, or 37.29 points, to 1,257.27.
Gainers outnumbered losers 713 to 43 today while 72 were unchanged.
The Shanghai Index dipped below the 5,000-point mark after the index suffered a 4.41-percent slide on November 22. The stocks remained gloomy and closed at 4,803.39 yesterday, its lowest close since August 20.
The index was helped as investors pushed up banks, property developers and airlines.
Airlines led the move as Air China Ltd, the nation's largest international carrier, jumped the daily cap of 10 percent, or 2.20 yuan (30 US cents), to close at 24.16 yuan while China Eastern Co and Shanghai Airlines both enjoyed the 10 percent gain today thanks to a rising yuan.
Air China said it will add about 40 Airbus SAS planes to its fleet in the next five years, Chairman Li Jiaxiang said in Beijing yesterday. Air China will add flights to Toronto, Canada, and Rome, Italy, and 10 to other European and North American cities by the end of 2009, Li added.
Banks and real estate developers ended a recent slump and enjoyed a strong rebound today as investors judged recent declines made shares attractive relative to earnings prospects.
Financial Street, a Beijing developer, hiked 8.15 percent, or 2.07 yuan, to 27.47 yuan after a slump of 5.22 percent yesterday.
Industrial and Commercial Bank of China, China's biggest lender and a heavyweight on the board, surged 6.37 percent, or 0.48 yuan, to 8.02 yuan.
Insurance firms also shared in the rally after Ping An Insurance (Group) Co paid 1.81 billion euros (US$2.8 billion) for a 4.18 percent stake in Fortis, Belgium's biggest financial-services company, Ping An said in a statement to the Hong Kong stock exchange.
Ping An, China's second-largest insurer, gained 7.45 percent, or 7.63 yuan, to 109.98 yuan while China Life, the country's largest insurer, also added 6.67 percent, or 3.53 yuan, to finish at 56.43 yuan.
The broad rally ended the slump of steel makers after Qi Xiangdong, vice chairman of the China Iron and Steel Association, said Chinese steel makers may reduce exports by 15 percent next year.
Baoshan, the nation's largest steel maker, erased a 0.34 percent loss in the morning and gained 3.21 percent, or 0.47 yuan, to finish at 15.11 yuan.
The United States Commerce Department this week proposed preliminary duties on imports of Chinese steel while European Union regulators will probably examine a complaint against cheap Chinese steel, which could lead to punitive tariffs, European Union Trade Commissioner Peter Mandelson said.
Elsewhere, China Petroleum, the nation's largest oil refiner, gained 8.72 percent, or 1.75 yuan, to 21.83 yuan, the steepest one-day advance since November 1. The company, also known as Sinopec, said in its online newsletter it plans to restart a refining unit at its Beijing plant in three months to boost fuel supply to the capital.
(Shanghai Daily November 29, 2007)
