Stocks advance despite GDP worries
By Ye Zhen |
July 16, 2013, Tuesday
|
Print Edition
Print Edition
SHANGHAI stocks advanced yesterday as data showed that China's slow economic expansion in the second quarter was in line with market estimates.
The benchmark Shanghai Composite Index rose 19.90 points, or 0.98 percent, to 2,059.39 amid expectations that the central government will make efforts to bolster growth while promoting restructuring.
China's gross domestic product (GDP) in the second quarter expanded 7.5 percent from a year earlier, moderating from a 7.7 percent rise in the prior quarter, the National Bureau of Statistics said.
The economy grew at 7.6 percent year on year in the first half, data showed. The rate was in line with market expectations and was higher than the official target of 7.5 percent for the whole of 2013.
"Expectations on the government unleashing an economic stimulus mounted after China posted weak GDP data, which would support the market to rebound further," Northeast Securities said.
Orient Securities said in a report that the government is expected to continue with the pump-priming strategy but will shift investment focus from infrastructure-related sectors to emerging industries such as environment protection and information consumption.
IT firms gained the most yesterday. Eastern Communications Co Ltd leaped 10 percent to 5.21 yuan (85 US cents). Fiberhome Telecommunication Technologies Co jumped 7 percent to 17.92 yuan.
Brokerages gained among financial firms after the securities regulator last Friday agreed to nearly double the investment quota for Qualified Foreign Institutional Investors to US$150 billion.
CITIC Securities jumped 4 percent to 10.96 yuan while Haitong Securities rose 4 percent to 10.98 yuan.
The benchmark Shanghai Composite Index rose 19.90 points, or 0.98 percent, to 2,059.39 amid expectations that the central government will make efforts to bolster growth while promoting restructuring.
China's gross domestic product (GDP) in the second quarter expanded 7.5 percent from a year earlier, moderating from a 7.7 percent rise in the prior quarter, the National Bureau of Statistics said.
The economy grew at 7.6 percent year on year in the first half, data showed. The rate was in line with market expectations and was higher than the official target of 7.5 percent for the whole of 2013.
"Expectations on the government unleashing an economic stimulus mounted after China posted weak GDP data, which would support the market to rebound further," Northeast Securities said.
Orient Securities said in a report that the government is expected to continue with the pump-priming strategy but will shift investment focus from infrastructure-related sectors to emerging industries such as environment protection and information consumption.
IT firms gained the most yesterday. Eastern Communications Co Ltd leaped 10 percent to 5.21 yuan (85 US cents). Fiberhome Telecommunication Technologies Co jumped 7 percent to 17.92 yuan.
Brokerages gained among financial firms after the securities regulator last Friday agreed to nearly double the investment quota for Qualified Foreign Institutional Investors to US$150 billion.
CITIC Securities jumped 4 percent to 10.96 yuan while Haitong Securities rose 4 percent to 10.98 yuan.
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