Stocks gain on home prices, manufacturing
By Hu Xiaocen |
July 3, 2012, Tuesday
|
Print Edition
Print Edition
SHANGHAI stocks gained yesterday as China's home prices rebounded for the first time in 10 months and manufacturing data contracted at a slower pace.
The key index edged up 0.03 percent to 2,226.11 points yesterday.
The China Index Academy said in a report yesterday that prices of new homes in the 100 monitored cities rose 0.05 percent in June, ending a nine-month downward trend since last September. The top-10 cities, including Shanghai and Beijing, saw a steeper rise of 0.75 percent in their prices.
People's willingness to make property purchases gradually strengthened amid fine-tuning of monetary policy. Sales volume in major cities has steadily picked up since March, the report said.
Most property developers gained on speculation the latest report signals a rebound in the real estate market. Poly Real Estate Group Co, China's second-biggest property developer, surged 2.3 percent to 11.60 yuan (US$1.83). Cinda Real Estate Co jumped 1.6 percent to 4.5 yuan.
Analysts said manufacturing activities contracted in June with a narrower magnitude, indicating diminishing pressure from economic slowdown.
"The official Purchasing Managers Index stood above the threshold of 50, while HSBC's reading was below the mark. The official index is slanted toward large enterprises, and the private reading focuses on SMEs, which means big companies have guaranteed profits but are not motivated for expansion, while small businesses continued to contract with thinner profits," Huang Sheng, an independent analyst wrote on weibo.com yesterday.
Qu Hongbin, chief economist for China at HSBC, said in a note yesterday: "Manufacturing activities started to stabilize. We expect a cut in reserve requirement ratio soon. The economy will rebound modestly in the next half-year."
Aluminum Corp of China Ltd paced an advance for material stocks as speculation Europe's debt crisis is easing bolstered the outlook for commodities demand.
Aluminum Corp of China, the country's largest producer of the metal, climbed 0.7 percent to 6.21 yuan. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co, China's biggest rare earth producer, rose for a second day, up 3.7 percent to 40.90 yuan.
The key index edged up 0.03 percent to 2,226.11 points yesterday.
The China Index Academy said in a report yesterday that prices of new homes in the 100 monitored cities rose 0.05 percent in June, ending a nine-month downward trend since last September. The top-10 cities, including Shanghai and Beijing, saw a steeper rise of 0.75 percent in their prices.
People's willingness to make property purchases gradually strengthened amid fine-tuning of monetary policy. Sales volume in major cities has steadily picked up since March, the report said.
Most property developers gained on speculation the latest report signals a rebound in the real estate market. Poly Real Estate Group Co, China's second-biggest property developer, surged 2.3 percent to 11.60 yuan (US$1.83). Cinda Real Estate Co jumped 1.6 percent to 4.5 yuan.
Analysts said manufacturing activities contracted in June with a narrower magnitude, indicating diminishing pressure from economic slowdown.
"The official Purchasing Managers Index stood above the threshold of 50, while HSBC's reading was below the mark. The official index is slanted toward large enterprises, and the private reading focuses on SMEs, which means big companies have guaranteed profits but are not motivated for expansion, while small businesses continued to contract with thinner profits," Huang Sheng, an independent analyst wrote on weibo.com yesterday.
Qu Hongbin, chief economist for China at HSBC, said in a note yesterday: "Manufacturing activities started to stabilize. We expect a cut in reserve requirement ratio soon. The economy will rebound modestly in the next half-year."
Aluminum Corp of China Ltd paced an advance for material stocks as speculation Europe's debt crisis is easing bolstered the outlook for commodities demand.
Aluminum Corp of China, the country's largest producer of the metal, climbed 0.7 percent to 6.21 yuan. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co, China's biggest rare earth producer, rose for a second day, up 3.7 percent to 40.90 yuan.
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