Key index rises to highest in 6 months on nation's 5-year plan
By Feng Jianmin |
October 16, 2010, Saturday
|
Print Edition
Print Edition
SHANGHAI stocks yesterday jumped to the highest in nearly six months, led by the technology and auto sectors, on speculation that China's new Five-Year Plan to be finalized in the next three days will boost development of cutting-edge industries and domestic consumption.
The Shanghai Composite Index rose 3.18 percent, or 91.52 points, to close at 2,971.16. The gauge yesterday rose for a seventh day, the longest winning streak since the eight days to November 10. Turnover was 273 billion yuan (US$41 billion), slightly higher than yesterday's 264.7 billion yuan.
The index ended the week up about 8.5 percent, the biggest weekly gain since February 6, 2009.
The 17th Central Committee of the Communist Party of China opened its fifth plenary session in Beijing yesterday to discuss and approve the nation's next five-year development plan, which sets national priorities.
The top-level discussions are expected to include narrowing the income gap between rich and poor, reducing energy consumption and balancing development of various regions of China, according to market watchers.
"Consumption-related stocks and high-tech companies show high investment value as China goes through economic transition," said a note published by Huashang Fund Management. "Such shares may be resistant to economic fluctuation and yield long-term profit."
Fengfan Stock Ltd, which is engaged in research, development, manufacture and distribution of storage batteries, rose by the daily limit of 10 percent to 16.20 yuan. China United Network Communications Ltd, the country's second-largest mobile operator and also known as China Unicom, gained 3.56 percent to 5.53 yuan.
Car makers extended previous gains on sales prospects amid government efforts to spur consumer spending. SAIC Motor Co, China's largest car maker, grew 1.53 percent to 19.94 yuan. Dongfeng Automobile Co rose 1.56 percent to 5.85 yuan.
The market's strong gain came after a week-long holiday in China, with investors playing catch-up after a global rally.
"The recent surge of Chinese stocks is mainly due to a worldwide boost of inflation and liquidity resulting from expectations of further stimulus by the US Fed," said a senior stock analyst in Shanghai who declined to be identified. "The growth is likely to end next week."
The Shanghai Composite Index rose 3.18 percent, or 91.52 points, to close at 2,971.16. The gauge yesterday rose for a seventh day, the longest winning streak since the eight days to November 10. Turnover was 273 billion yuan (US$41 billion), slightly higher than yesterday's 264.7 billion yuan.
The index ended the week up about 8.5 percent, the biggest weekly gain since February 6, 2009.
The 17th Central Committee of the Communist Party of China opened its fifth plenary session in Beijing yesterday to discuss and approve the nation's next five-year development plan, which sets national priorities.
The top-level discussions are expected to include narrowing the income gap between rich and poor, reducing energy consumption and balancing development of various regions of China, according to market watchers.
"Consumption-related stocks and high-tech companies show high investment value as China goes through economic transition," said a note published by Huashang Fund Management. "Such shares may be resistant to economic fluctuation and yield long-term profit."
Fengfan Stock Ltd, which is engaged in research, development, manufacture and distribution of storage batteries, rose by the daily limit of 10 percent to 16.20 yuan. China United Network Communications Ltd, the country's second-largest mobile operator and also known as China Unicom, gained 3.56 percent to 5.53 yuan.
Car makers extended previous gains on sales prospects amid government efforts to spur consumer spending. SAIC Motor Co, China's largest car maker, grew 1.53 percent to 19.94 yuan. Dongfeng Automobile Co rose 1.56 percent to 5.85 yuan.
The market's strong gain came after a week-long holiday in China, with investors playing catch-up after a global rally.
"The recent surge of Chinese stocks is mainly due to a worldwide boost of inflation and liquidity resulting from expectations of further stimulus by the US Fed," said a senior stock analyst in Shanghai who declined to be identified. "The growth is likely to end next week."
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