Shares gain on optimism over measures
By Ye Zhen |
September 8, 2012, Saturday
|
Print Edition
Print Edition
SHANGHAI stocks jumped the most in nearly eight months yesterday after China approved new infrastructure projects to revitalize its economy and the European Central Bank unveiled a new bond-buying plan to help cut borrowing costs amid the eurozone debt woes.
The Shanghai Composite Index jumped 3.7 percent, the biggest advance since January 17, to 2,127.76 points.
For this week, the barometer gained 3.9 percent, the largest weekly gain since October.
The National Development and Reform Commission, China's top economic planner, on Thursday approved 20 new infrastructure projects, including building more than 2,000 kilometers of highways. Including the 25 subway projects announced on Wednesday, the total investment is estimated at 1 trillion yuan (US$158 billion), the biggest stimulus package since October 2008.
HSBC Holding Plc estimated that China's infrastructure investment will increase 20 percent this year.
Meanwhile, ECB President Mario Draghi on Thursday unveiled the bond-purchase program that sets no limit on the amount of bonds it could buy to help bring down the borrowing costs of Europe's struggling governments.
Qu Hongbin, chief economist for China at HSBC, said the ECB's unlimited bond-buying program will help boost investor confidence.
Cement producers gained on optimism that more construction projects being built will boost their bottom line.
Anhui Conch Cement Co, the country's biggest cement producer, rose by the daily limit of 10 percent to 15.07 yuan, as did Gansu Qilianshan Cement Group Co, which ended at 10.56 yuan.
Brokerages also soared as they hoped the setup of regional equity trading centers will boost their business.
CITIC Securities, China's biggest listed brokerage, rose 7.6 percent to 11.48 yuan after it said it will buy 30 percent of Qianhai Equity Trading Center (Shenzhen) Co. Soochow Securities Co jumped by the 10 percent daily limit to 8 yuan.
The Shanghai Composite Index jumped 3.7 percent, the biggest advance since January 17, to 2,127.76 points.
For this week, the barometer gained 3.9 percent, the largest weekly gain since October.
The National Development and Reform Commission, China's top economic planner, on Thursday approved 20 new infrastructure projects, including building more than 2,000 kilometers of highways. Including the 25 subway projects announced on Wednesday, the total investment is estimated at 1 trillion yuan (US$158 billion), the biggest stimulus package since October 2008.
HSBC Holding Plc estimated that China's infrastructure investment will increase 20 percent this year.
Meanwhile, ECB President Mario Draghi on Thursday unveiled the bond-purchase program that sets no limit on the amount of bonds it could buy to help bring down the borrowing costs of Europe's struggling governments.
Qu Hongbin, chief economist for China at HSBC, said the ECB's unlimited bond-buying program will help boost investor confidence.
Cement producers gained on optimism that more construction projects being built will boost their bottom line.
Anhui Conch Cement Co, the country's biggest cement producer, rose by the daily limit of 10 percent to 15.07 yuan, as did Gansu Qilianshan Cement Group Co, which ended at 10.56 yuan.
Brokerages also soared as they hoped the setup of regional equity trading centers will boost their business.
CITIC Securities, China's biggest listed brokerage, rose 7.6 percent to 11.48 yuan after it said it will buy 30 percent of Qianhai Equity Trading Center (Shenzhen) Co. Soochow Securities Co jumped by the 10 percent daily limit to 8 yuan.
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