Higher fiscal spending plan fuels 2.3% rise in index
By Ye Zhen |
March 6, 2013, Wednesday
|
Print Edition
Print Edition
SHANGHAI stocks rallied from a nearly two-month low yesterday after China said it will increase fiscal spending this year to underpin economic growth.
The Shanghai Composite Index rose 2.3 percent to close at 2,326.31 points.
China targeted a fiscal deficit of 1.2 trillion yuan (US$191 billion) for 2013, a rise of 400 billion yuan from the budgeted figure in 2012, said a government work report delivered by Premier Wen Jiabao yesterday.
"The statement signaled that the government will take a more proactive fiscal policy to boost the economy as home curbs dampen investment and anti-corruption measures reduce consumption," Huarong Securities said in a report yesterday.
Market sentiment was also fueled by expectations that more stimulus measures will be unveiled during the National People's Congress meeting.
"More stimulus policies may be unveiled during the national meeting which will boost related sectors such as agriculture, health care and financial industries," said Guangzhou Wanlong Securities Consulting Co.
Lenders gained after the banking regulator allowed more banks to set up fund companies on a trial basis.
The Industrial Bank surged by the daily limit of 10 percent to 20.16 yuan. Shanghai Pudong Development Bank Co gained 6.5 percent to 11.07 yuan, and China Merchants Bank rose 8.9 percent to 13.36 yuan.
Property stocks fell on new home curbs. Poly Real Estate, China's second-largest listed developer, shed 1.1 percent to 11.25 yuan. Gemdale Corp lost 1 percent to 6.36 yuan.
The Shanghai Composite Index rose 2.3 percent to close at 2,326.31 points.
China targeted a fiscal deficit of 1.2 trillion yuan (US$191 billion) for 2013, a rise of 400 billion yuan from the budgeted figure in 2012, said a government work report delivered by Premier Wen Jiabao yesterday.
"The statement signaled that the government will take a more proactive fiscal policy to boost the economy as home curbs dampen investment and anti-corruption measures reduce consumption," Huarong Securities said in a report yesterday.
Market sentiment was also fueled by expectations that more stimulus measures will be unveiled during the National People's Congress meeting.
"More stimulus policies may be unveiled during the national meeting which will boost related sectors such as agriculture, health care and financial industries," said Guangzhou Wanlong Securities Consulting Co.
Lenders gained after the banking regulator allowed more banks to set up fund companies on a trial basis.
The Industrial Bank surged by the daily limit of 10 percent to 20.16 yuan. Shanghai Pudong Development Bank Co gained 6.5 percent to 11.07 yuan, and China Merchants Bank rose 8.9 percent to 13.36 yuan.
Property stocks fell on new home curbs. Poly Real Estate, China's second-largest listed developer, shed 1.1 percent to 11.25 yuan. Gemdale Corp lost 1 percent to 6.36 yuan.
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