Holding its own against others
By Lydia Chen |
August 10, 2011, Wednesday
|
Print Edition
Print Edition
SHANGHAI'S key stock index edged down yesterday but outperformed most markets in the Asia-Pacific region, helped by banks and developers on speculation recent declines were excessive relative to the outlook for earnings.
The Shanghai Composite Index closed 0.03 percent lower to 2,526.07 points, erasing a drop of as much as 3.5 percent. The local market opened 2.3 percent lower after a global rout on Monday due to concerns about a possible recession in the United States and the debt crisis in Europe.
Hong Kong's Hang Seng Index yesterday tumbled 5.7 percent to 19,330.7. Other markets fell too, including Japan's Nikkei 225 stock average, which ended 1.7 percent lower at 8,944.48, having earlier traded 4 percent down.
Analysts expect more volatility and uncertainty due to global factors and a lack of liquidity in the domestic market.
Han Hao, an analyst at China Minzu Securities, said he expects domestic stocks to drop further since the country's economy will be affected by the debt crises in the US and Europe, China's two largest trade partners.
Zhang Qi, an analyst at Haitong Securities, said: "Investors should understand that companies still have excessive demands to raise more funds, and this will continue to cripple the market."
Banks and developers helped stabilize the market after China Vanke Co and China Merchants Bank both posted net profit growth in the first six months of this year.
Shenzhen-listed China Vanke, the country's largest developer, jumped 3 percent to 8.30 yuan (US$1.29) after reporting revenue from January to June climbed 19.2 percent from a year ago to 19.99 billion yuan and net profit rose 5.9 percent to 2.98 billion yuan. China Vanke's surge gave the property sector in Shanghai trading a shot in the arm. Poly Real Estate Group Co, China's second-biggest listed developer, jumped 3.9 percent to 10.84 yuan.
China Merchants Bank, the nation's sixth-largest lender by market value, saw half-year revenue rise 39.6 percent from a year earlier to 46 billion yuan while net profit rocketed 40 percent to 18.5 billion yuan. It edged up 0.7 percent to 11.51 yuan.
The Shanghai Composite Index closed 0.03 percent lower to 2,526.07 points, erasing a drop of as much as 3.5 percent. The local market opened 2.3 percent lower after a global rout on Monday due to concerns about a possible recession in the United States and the debt crisis in Europe.
Hong Kong's Hang Seng Index yesterday tumbled 5.7 percent to 19,330.7. Other markets fell too, including Japan's Nikkei 225 stock average, which ended 1.7 percent lower at 8,944.48, having earlier traded 4 percent down.
Analysts expect more volatility and uncertainty due to global factors and a lack of liquidity in the domestic market.
Han Hao, an analyst at China Minzu Securities, said he expects domestic stocks to drop further since the country's economy will be affected by the debt crises in the US and Europe, China's two largest trade partners.
Zhang Qi, an analyst at Haitong Securities, said: "Investors should understand that companies still have excessive demands to raise more funds, and this will continue to cripple the market."
Banks and developers helped stabilize the market after China Vanke Co and China Merchants Bank both posted net profit growth in the first six months of this year.
Shenzhen-listed China Vanke, the country's largest developer, jumped 3 percent to 8.30 yuan (US$1.29) after reporting revenue from January to June climbed 19.2 percent from a year ago to 19.99 billion yuan and net profit rose 5.9 percent to 2.98 billion yuan. China Vanke's surge gave the property sector in Shanghai trading a shot in the arm. Poly Real Estate Group Co, China's second-biggest listed developer, jumped 3.9 percent to 10.84 yuan.
China Merchants Bank, the nation's sixth-largest lender by market value, saw half-year revenue rise 39.6 percent from a year earlier to 46 billion yuan while net profit rocketed 40 percent to 18.5 billion yuan. It edged up 0.7 percent to 11.51 yuan.
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