Shares rise on improved loans, money supply data
By Lu Nengneng and Hu Xiaocen |
January 10, 2012, Tuesday
|
Print Edition
Print Edition
SHANGHAI'S key stock index rose the most in three months yesterday on renewed optimism after Premier Wen Jiabao called for better regulated stock markets, while money supply and loan data exceeded forecasts.
The Shanghai Composite Index jumped 2.89 percent, its biggest gain since October 12, to 2,225.89 points - the highest close in three weeks. Turnover stood at 62.1 billion yuan (US$9.8 billion), more than double that of last Friday.
During the two-day National Financial Work Conference that concluded on Saturday in Beijing, Wen said the stock market needed to reform its initial public offerings, distribution, delisting and dividend payout regulations to bolster market confidence shaken by a 21.7 percent plunge in the index last year. Brokers outperformed the index on brighter earnings prospects following the market rally. Haitong Securities added 4.4 percent to 7.62 yuan. Industrial Securities rose 5.2 percent to 10.14 yuan.
Bankers advanced on a better liquidity outlook after the central bank reported new loans in December had reached 640.5 billion yuan, the highest level since April. In addition, the M2, a measure of money supply, increased 13.6 percent annually in December - 0.9 percentage points higher than November.
China Merchants Bank climbed 3.25 percent to 12.38 yuan. The Industrial and Commercial Bank, the nation's largest lender, edged up 0.7 percent to 4.31 yuan.
"The new loan figure for December is higher than market expectations. This is the result of loosened credit controls at the year-end aimed at helping cash-strapped small and medium companies, while mitigating the risks of private lending," Chen Manjiang, analyst at Bank of China International, said in a note.
Meanwhile, a rebound in China's Purchasing Managers Index to 50.3 for December from November's 49, as a reflection of reviving industrial activities, suggested higher demand for energy in the future.
As a result, coal miners jumped the most among all the sectors yesterday. Yanzhou Coal Mining soared 8.2 percent to 23.26 yuan. China Shenhua Energy jumped 7.2 percent to 26.01 yuan.
The Shanghai Composite Index jumped 2.89 percent, its biggest gain since October 12, to 2,225.89 points - the highest close in three weeks. Turnover stood at 62.1 billion yuan (US$9.8 billion), more than double that of last Friday.
During the two-day National Financial Work Conference that concluded on Saturday in Beijing, Wen said the stock market needed to reform its initial public offerings, distribution, delisting and dividend payout regulations to bolster market confidence shaken by a 21.7 percent plunge in the index last year. Brokers outperformed the index on brighter earnings prospects following the market rally. Haitong Securities added 4.4 percent to 7.62 yuan. Industrial Securities rose 5.2 percent to 10.14 yuan.
Bankers advanced on a better liquidity outlook after the central bank reported new loans in December had reached 640.5 billion yuan, the highest level since April. In addition, the M2, a measure of money supply, increased 13.6 percent annually in December - 0.9 percentage points higher than November.
China Merchants Bank climbed 3.25 percent to 12.38 yuan. The Industrial and Commercial Bank, the nation's largest lender, edged up 0.7 percent to 4.31 yuan.
"The new loan figure for December is higher than market expectations. This is the result of loosened credit controls at the year-end aimed at helping cash-strapped small and medium companies, while mitigating the risks of private lending," Chen Manjiang, analyst at Bank of China International, said in a note.
Meanwhile, a rebound in China's Purchasing Managers Index to 50.3 for December from November's 49, as a reflection of reviving industrial activities, suggested higher demand for energy in the future.
As a result, coal miners jumped the most among all the sectors yesterday. Yanzhou Coal Mining soared 8.2 percent to 23.26 yuan. China Shenhua Energy jumped 7.2 percent to 26.01 yuan.
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