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Index wipes out losses for year by ending at highest in over 5 months
By Ye Zhen |
December 26, 2012, Wednesday
|
Print Edition
Print Edition
SHANGHAI stocks wiped out losses for the year after they closed yesterday at the highest level in more than five months, as China accelerated approval of building projects to spur growth and investors were optimistic over the economic outlook.
The Shanghai Composite Index gained 2.53 percent to 2,213.61 points, the highest close since July 6.
The benchmark is up 0.6 percent in 2012 and has risen 13 percent since this year's closing low of 1,959.77 on December 3. The index is headed for its biggest monthly advance since October 2010.
The National Development and Reform Commission said it has approved 21 major construction projects, bringing the total to 94 this month, up from 17 in November and 75 in October.
The NDRC said in a separate draft proposal that the country's urbanization could attract 40 trillion yuan (US$6.5 trillion) in investment over the next 10 years.
"Investors have high expectations for the urbanization drive while an improving economy also boosted market sentiment," said Yao Kai, analyst with Aerospace Securities.
HSBC China forecasts the economy to expand 8.6 percent in 2013 amid robust investment in infrastructure and property as well as dynamic consumption.
Sun Yu, director of securities strategy at HSBC China, said the stock market may rebound more than 20 percent next year amid a recovering economy and accelerating reforms.
Property firms were the biggest gainers after the Ministry of Housing and Urban-Rural Development said it will support demand from residents seeking bigger homes next year while keeping curbs on speculative demand.
CITIC Securities said in a report the government will tolerate rising home prices as it tries to stimulate economic growth.
Poly Real Estate, China's second-biggest listed developer, jumped 4.7 percent to 12.84 yuan and Gemdale Corp rose 5.6 percent to settle at 6.40 yuan.
The Shanghai Composite Index gained 2.53 percent to 2,213.61 points, the highest close since July 6.
The benchmark is up 0.6 percent in 2012 and has risen 13 percent since this year's closing low of 1,959.77 on December 3. The index is headed for its biggest monthly advance since October 2010.
The National Development and Reform Commission said it has approved 21 major construction projects, bringing the total to 94 this month, up from 17 in November and 75 in October.
The NDRC said in a separate draft proposal that the country's urbanization could attract 40 trillion yuan (US$6.5 trillion) in investment over the next 10 years.
"Investors have high expectations for the urbanization drive while an improving economy also boosted market sentiment," said Yao Kai, analyst with Aerospace Securities.
HSBC China forecasts the economy to expand 8.6 percent in 2013 amid robust investment in infrastructure and property as well as dynamic consumption.
Sun Yu, director of securities strategy at HSBC China, said the stock market may rebound more than 20 percent next year amid a recovering economy and accelerating reforms.
Property firms were the biggest gainers after the Ministry of Housing and Urban-Rural Development said it will support demand from residents seeking bigger homes next year while keeping curbs on speculative demand.
CITIC Securities said in a report the government will tolerate rising home prices as it tries to stimulate economic growth.
Poly Real Estate, China's second-biggest listed developer, jumped 4.7 percent to 12.84 yuan and Gemdale Corp rose 5.6 percent to settle at 6.40 yuan.
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