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New measures, strength in manufacturing sector boost shares
By Hu Xiaocen |
May 2, 2012, Wednesday
|
Online Edition
Online Edition
SHANGHAI stocks rallied the most in two weeks today as China's manufacturing sector showed signs of a rebound and investor confidence was bolstered due to new measures designed to boost the capital market.
The Shanghai Composite Index jumped 1.76 percent, or 42.12 points to 2,438.44, the highest since March 13. Turnover stood at 124 billion yuan (US$19.7 billion) at the trading close.
"The new measures are the major force driving the market rebound," said China Galaxy Securities in a report today. "New policies were introduced during the three-day Labor Day holiday, which will push up the index to 2,500 points. In addition, the official PMI rose 0.2 percentage points from March to 53.3 in April, consolidating our confidence in future economic prospects. Further relaxation of macroeconomic policies will drive the market up in the next stage."
Manufacturing activities continued to expand in April, indicating a rebound in economic growth from the first quarter.
HSBC Holdings Plc and Markit Economics today posted the final reading of the PMI in April at 49.3. It compared with a preliminary reading of 49.1 reported last week, and up from March's final 48.3.
The official PMI rose for a fifth month to 53.3, the highest in 13 months, the China Federation of Logistics and Purchasing said yesterday.
A number above 50 means expansion in manufacturing.
Coal and metal producers led the gains on possible rising demand due to an improved economic outlook.
China Shenhua Energy Co, the nation's largest coal producer, jumped 2.7 percent to 27.62 yuan. Jiangxi Copper Co, China's biggest producer of the metal, soared 6.1 percent to 27.66 yuan. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co, the biggest producer of rare earths, surged 8.6 percent to 77.10 yuan.
The China Securities Regulatory Commission lowered trading commissions for all futures products by 30 percent on average, followed by a 25 percent cut for A-share trading fees in general. According to the regulator's statements on its website, both take effective on June 1.
"Only the reduced transfer fees benefit buyers, the rest of the adjustments are related to brokerages," independent business commentator Ye Tan said today on her microblog. "The regulator used to boost transactions by cutting the stamp duty. The delisting rule is the real thing, and the IPO reform is a gradual process."
Brokerages benefited from renewed market confidence. Haitong Securities Co jumped 2.3 percent to 10.12 yuan. Citic Securities Co gained 1.3 percent to 13.17 yuan. China Merchants Securities Co advanced 2.4 percent to 13.17 yuan.
People.cn Co, the online business of People's Daily, the Chinese Communist Party's flagship newspaper, soared 10 percent to 38.19 yuan today, one day after its debut. Its shares have gained 91 percent from its issue price of 20 yuan.
The Shanghai Composite Index jumped 1.76 percent, or 42.12 points to 2,438.44, the highest since March 13. Turnover stood at 124 billion yuan (US$19.7 billion) at the trading close.
"The new measures are the major force driving the market rebound," said China Galaxy Securities in a report today. "New policies were introduced during the three-day Labor Day holiday, which will push up the index to 2,500 points. In addition, the official PMI rose 0.2 percentage points from March to 53.3 in April, consolidating our confidence in future economic prospects. Further relaxation of macroeconomic policies will drive the market up in the next stage."
Manufacturing activities continued to expand in April, indicating a rebound in economic growth from the first quarter.
HSBC Holdings Plc and Markit Economics today posted the final reading of the PMI in April at 49.3. It compared with a preliminary reading of 49.1 reported last week, and up from March's final 48.3.
The official PMI rose for a fifth month to 53.3, the highest in 13 months, the China Federation of Logistics and Purchasing said yesterday.
A number above 50 means expansion in manufacturing.
Coal and metal producers led the gains on possible rising demand due to an improved economic outlook.
China Shenhua Energy Co, the nation's largest coal producer, jumped 2.7 percent to 27.62 yuan. Jiangxi Copper Co, China's biggest producer of the metal, soared 6.1 percent to 27.66 yuan. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co, the biggest producer of rare earths, surged 8.6 percent to 77.10 yuan.
The China Securities Regulatory Commission lowered trading commissions for all futures products by 30 percent on average, followed by a 25 percent cut for A-share trading fees in general. According to the regulator's statements on its website, both take effective on June 1.
"Only the reduced transfer fees benefit buyers, the rest of the adjustments are related to brokerages," independent business commentator Ye Tan said today on her microblog. "The regulator used to boost transactions by cutting the stamp duty. The delisting rule is the real thing, and the IPO reform is a gradual process."
Brokerages benefited from renewed market confidence. Haitong Securities Co jumped 2.3 percent to 10.12 yuan. Citic Securities Co gained 1.3 percent to 13.17 yuan. China Merchants Securities Co advanced 2.4 percent to 13.17 yuan.
People.cn Co, the online business of People's Daily, the Chinese Communist Party's flagship newspaper, soared 10 percent to 38.19 yuan today, one day after its debut. Its shares have gained 91 percent from its issue price of 20 yuan.
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