Shares rise to biggest daily gains in 1 year
By Lydia Chen |
October 13, 2011, Thursday
|
Print Edition
Print Edition
SHANGHAI shares yesterday surged to their biggest daily gains in a year on speculation that the Chinese government may unveil more market-saving measures.
An across-the-board rally led by financial and real estate counters pushed the Shanghai Composite Index to jump 3 percent to end at 2,420 points.
Analysts were, however, mixed about the index's biggest daily surge since October 15, 2010. Shenyin and Wanguo Securities cautioned that the rise was merely a recovery from the previous hefty declines while others were more positive by saying that China may come up with more measures to spur the market that has lost 14 percent this year.
Banks extended Tuesday's gains after Central Huijin Investment, a state-run investment arm, began buying shares of the top four banks. The Industrial and Commercial Bank of China, the nation's largest lender, added 1.7 percent to 4.12 yuan (US$0.65).
"The move by Central Huijin is not merely a gesture," Shen Zhengyang, an analyst at Northeast Securities. "There will be more moves from the government, including lowering the bank reserve ratio and unveiling special monetary easing policies to designated industries."
Haitong Securities Co led a rally for brokerages after Xinhua news agency said regulators have approved cross-border exchange-traded funds. The ETF for the Hong Kong market may be launched by the end of this year, followed by those for Western markets, Xinhua cited unidentified sources as saying yesterday.
China's two biggest train makers surged after the 21st Century Business Herald said their parent firms may each get a 2 billion yuan cash injection from the government. CSR Corp rose 5.2 percent to 4.67 yuan. China CNR Corp gained 5.2 percent to 4.70 yuan.
An across-the-board rally led by financial and real estate counters pushed the Shanghai Composite Index to jump 3 percent to end at 2,420 points.
Analysts were, however, mixed about the index's biggest daily surge since October 15, 2010. Shenyin and Wanguo Securities cautioned that the rise was merely a recovery from the previous hefty declines while others were more positive by saying that China may come up with more measures to spur the market that has lost 14 percent this year.
Banks extended Tuesday's gains after Central Huijin Investment, a state-run investment arm, began buying shares of the top four banks. The Industrial and Commercial Bank of China, the nation's largest lender, added 1.7 percent to 4.12 yuan (US$0.65).
"The move by Central Huijin is not merely a gesture," Shen Zhengyang, an analyst at Northeast Securities. "There will be more moves from the government, including lowering the bank reserve ratio and unveiling special monetary easing policies to designated industries."
Haitong Securities Co led a rally for brokerages after Xinhua news agency said regulators have approved cross-border exchange-traded funds. The ETF for the Hong Kong market may be launched by the end of this year, followed by those for Western markets, Xinhua cited unidentified sources as saying yesterday.
China's two biggest train makers surged after the 21st Century Business Herald said their parent firms may each get a 2 billion yuan cash injection from the government. CSR Corp rose 5.2 percent to 4.67 yuan. China CNR Corp gained 5.2 percent to 4.70 yuan.
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