Key index posts 2nd day of increase
By Feng Jianmin |
April 22, 2011, Friday
|
Print Edition
Print Edition
SHANGHAI'S key stock index rose for the second day, led by rare earth producers and steel makers.
The Shanghai Composite Index edged up 0.7 percent, or 19.63 points, to close at 3,026.67.
Banks have to put aside about 370 billion yuan (US$57 billion) from lending after the reserve requirement ratio was raised by 0.5 percentage point yesterday as previously announced by the People's Bank of China. The central bank has added 94 billion yuan to the financial system through open market operations this week.
"A strong performance of blue chips lifted sentiment, while liquidity seems abundant in the market despite the hike in the reserve requirement ratio," said Chen Zili, a senior analyst at Jinzheng Consulting.
Rare earth producers rallied after Hong Kong-based service company China Customs Statistics yesterday revealed that China's exports of the commodity surged eight folds in the first quarter compared to the same period last year.
Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co, China's largest rare earth producer by output, jumped 4.6 percent to 88.92 yuan.
Jinan Iron and Steel Co and Laiwu Steel Co led gains in the steel sector. Both companies jumped by the daily limit of 10 percent for the seventh consecutive day on speculation their merger may boost profitability. They resumed trading last Wednesday after Jinan Iron said it would acquire Laiwu Steel via a share swap.
Brokers also rose on hopes that strong trading will boost their earnings. A Bohai Securities' report said trading on the mainland stock market in the first quarter grew 16.5 percent from last year to 13.5 trillion yuan. CITIC Securities Co gained 2.1 percent to 14.48 yuan.
The Shanghai Composite Index edged up 0.7 percent, or 19.63 points, to close at 3,026.67.
Banks have to put aside about 370 billion yuan (US$57 billion) from lending after the reserve requirement ratio was raised by 0.5 percentage point yesterday as previously announced by the People's Bank of China. The central bank has added 94 billion yuan to the financial system through open market operations this week.
"A strong performance of blue chips lifted sentiment, while liquidity seems abundant in the market despite the hike in the reserve requirement ratio," said Chen Zili, a senior analyst at Jinzheng Consulting.
Rare earth producers rallied after Hong Kong-based service company China Customs Statistics yesterday revealed that China's exports of the commodity surged eight folds in the first quarter compared to the same period last year.
Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co, China's largest rare earth producer by output, jumped 4.6 percent to 88.92 yuan.
Jinan Iron and Steel Co and Laiwu Steel Co led gains in the steel sector. Both companies jumped by the daily limit of 10 percent for the seventh consecutive day on speculation their merger may boost profitability. They resumed trading last Wednesday after Jinan Iron said it would acquire Laiwu Steel via a share swap.
Brokers also rose on hopes that strong trading will boost their earnings. A Bohai Securities' report said trading on the mainland stock market in the first quarter grew 16.5 percent from last year to 13.5 trillion yuan. CITIC Securities Co gained 2.1 percent to 14.48 yuan.
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