Key index gains but property shares fall
By Feng Jianmin |
October 18, 2011, Tuesday
|
Print Edition
Print Edition
SHANGHAI'S stock market closed slightly higher yesterday as worries over the European debt crisis ease, and also on speculation that China's domestic inflation has peaked.
But the property sector was weak after some banks raised mortgage rates on first home buyers.
The Shanghai Composite Index edged up 0.4 percent to 2,440.40 points.
Europe's strategy to end the two-year sovereign debt crisis over the weekend won the backing of the Group of 20 financial leaders from major economies, including the United States, UK, Canada and China. They urged the region's leaders to deal "decisively" with the turmoil when they meet for emergency talks at the weekend.
"We believe that the European debt crisis will not worsen if all parties cooperate to resolve it," said Chen Yong, an analyst at Lianxun Securities.
Meanwhile, China International Capital Corp said in a report yesterday that Chinese stocks would extend recent rallies as inflation may have peaked.
Chen said institutional investor confidence has increased as inflation cooled in September and was also boosted by the buying of shares in big state-owned banks by Central Huijin Investment Ltd, a government investment arm.
The Bank of China inched up 0.3 percent to 3.01 yuan while China Merchants Bank rose 1.7 percent to 11.88 yuan.
Property developers fell after reports said banks in China have raised home loan interest rates by 20-30 percent amid a liquidity drought. Gemdale Corp lost 1 percent to close at 4.82 yuan.
But the property sector was weak after some banks raised mortgage rates on first home buyers.
The Shanghai Composite Index edged up 0.4 percent to 2,440.40 points.
Europe's strategy to end the two-year sovereign debt crisis over the weekend won the backing of the Group of 20 financial leaders from major economies, including the United States, UK, Canada and China. They urged the region's leaders to deal "decisively" with the turmoil when they meet for emergency talks at the weekend.
"We believe that the European debt crisis will not worsen if all parties cooperate to resolve it," said Chen Yong, an analyst at Lianxun Securities.
Meanwhile, China International Capital Corp said in a report yesterday that Chinese stocks would extend recent rallies as inflation may have peaked.
Chen said institutional investor confidence has increased as inflation cooled in September and was also boosted by the buying of shares in big state-owned banks by Central Huijin Investment Ltd, a government investment arm.
The Bank of China inched up 0.3 percent to 3.01 yuan while China Merchants Bank rose 1.7 percent to 11.88 yuan.
Property developers fell after reports said banks in China have raised home loan interest rates by 20-30 percent amid a liquidity drought. Gemdale Corp lost 1 percent to close at 4.82 yuan.
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