Developers lead index to 4th day rise

By Ye Zhen | August 2, 2013, Friday |

Online Edition

Shanghai stocks rose for the fourth day in a row today as property developers advanced on signs of easing control on their refinancing.

The Shanghai Composite Index edged up 0.02 percent to 2,029.42 points. The gauge ended the week with a 0.92 percent increase following a slew of official comments that indicated the government is shifting its policy stance from a hands-off to an active approach by introducing fine-tuning measures to shore up economy.

Xinhu Zhongbao Co, a Hangzhou-based homebuilder, paced the gain of the property sector, surging 9.9 percent to 3.65 yuan, after the company announced a private placement plan to raise as much as 5.5 billion yuan (US$902 million) to finance two real estate projects.

The share sale plan, the first refinancing try by a real estate company in three years, is pending the regulatory approval.

“The plan gave rise to expectation that the regulator may soon relax its control on refinancing by homebuilders, especially after the politburo mid-year meeting signaled a more tolerant policy stance,” the UBS Investment Research said in a note today.

“The resumption of refinancing will help real estate firms to reduce funding costs and improve earnings,” UBS said.

Poly Real Estate, China’s second-largest listed developer, jumped 3.7 percent to 10.93 yuan. Gemdale Corp increased 2.1 percent to 7.17 yuan. Cinda Real Estate Co leaped by the daily limit of 10 percent to 3.37 yuan.

The China Securities Regulatory Commission suspended approval of refinancing applications by real estate developers in October 2010 to comply with the central government’s decision to rein in soaring home prices.

Photovoltaic firms gained after China Securities Journal reported that the government is planning to offer a 50 percent refund on value-added tax for solar power generators.

North Electro-Optic Co surged 5.03 percent to 22.35 yuan. Sanan Optoelectronics Co added 2.2 percent to 21.33 yuan.

Business Finance

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Developers lead index to 4th day rise

Email this to your friend