Stocks climb to a 3-week high
By Feng Jianmin and Pan Xiaoyi |
July 21, 2010, Wednesday
|
Print Edition
Print Edition
SHANGHAI stocks were at a three-week high yesterday on speculation the government may allow an inflow of foreign capital to ease liquidity concerns.
The benchmark Shanghai Composite Index rose 2.15 percent, or 53.31 points, to close at 2,528.73. Turnover swelled to 116.4 billion yuan (US$17.1 billion) from Monday's 79.5 billion yuan.
China's central bank has signed an agreement with the Hong Kong government to allow banks there to provide a full range of yuan-related services for financial institutions. This was seen as a progress toward the possibility of mainland brokerages raising funds in Hong Kong to trade A shares, analysts said.
"The rising turnover reflects recovery in investor sentiment. We also tracked signs that institutional investors are increasing their holdings to push up the market," said Xu Yinbin, an analyst from Nanjing Securities Co. "The rebound may sustain in the short term with some fluctuations."
Brokerages led the gainers after China Securities Journal reported that China may also allow qualified foreign institutional investors, or QFIIs, to use as much as 10 percent of approved investment quotas to trade stock-index futures.
Citic Securities Co climbed 2.6 percent to 12.06 yuan. Everbright Securities Co jumped 3.1 percent to 16.11 yuan and Haitong Securities Co advanced 3.1 percent to 9.56 yuan.
Energy-related stocks led the gainers.
China Shenhua Energy Co, the nation's largest coal producer, rose 1.9 percent to 22.83 yuan. Datong Coal Industry Co climbed 9.9 percent to 31.77 yuan. PetroChina, the biggest index component, added 1.56 percent to 10.35 yuan. Sinopec, Asia's largest oil refiner, advanced 3.6 percent to 8.38 yuan.
The benchmark Shanghai Composite Index rose 2.15 percent, or 53.31 points, to close at 2,528.73. Turnover swelled to 116.4 billion yuan (US$17.1 billion) from Monday's 79.5 billion yuan.
China's central bank has signed an agreement with the Hong Kong government to allow banks there to provide a full range of yuan-related services for financial institutions. This was seen as a progress toward the possibility of mainland brokerages raising funds in Hong Kong to trade A shares, analysts said.
"The rising turnover reflects recovery in investor sentiment. We also tracked signs that institutional investors are increasing their holdings to push up the market," said Xu Yinbin, an analyst from Nanjing Securities Co. "The rebound may sustain in the short term with some fluctuations."
Brokerages led the gainers after China Securities Journal reported that China may also allow qualified foreign institutional investors, or QFIIs, to use as much as 10 percent of approved investment quotas to trade stock-index futures.
Citic Securities Co climbed 2.6 percent to 12.06 yuan. Everbright Securities Co jumped 3.1 percent to 16.11 yuan and Haitong Securities Co advanced 3.1 percent to 9.56 yuan.
Energy-related stocks led the gainers.
China Shenhua Energy Co, the nation's largest coal producer, rose 1.9 percent to 22.83 yuan. Datong Coal Industry Co climbed 9.9 percent to 31.77 yuan. PetroChina, the biggest index component, added 1.56 percent to 10.35 yuan. Sinopec, Asia's largest oil refiner, advanced 3.6 percent to 8.38 yuan.
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