China markets up on more signs of recovery
China markets stocks rose, led by metal and coal shares, as more signs pointed to an economic recovery.
The Shanghai Comprehensive Index added 1.12 percent to 2922.30，the highest in more than a year. The SME Comprehensive Index climbed 1.15 percent to 4338.37.
The Hang Seng Index rose2.02 percent to 17892.15. The Hang Seng Growth Enterprises Index advanced 1.35 percent to 566.39. The Hang Seng China Enterprise Index climbed 2.43 percent to 10530.35.
Taiwan's TAIEX Index rose 2.95 perent to 6380.08.
According to China's statistical bureau, power output rose in the first two weeks of June, with the average daily electricity production up 3.8 percent from a year earlier. Also, GDP for the second quarter may reach 8 percent, it said.
Huaneng Power International Inc. (SH:600011;HK:0902), China’s biggest generator, rose 2.29 percent on Shanghai and 2.26 percent on Hong Kong. Henan Yuneng Hodings Co.(SZ:001896) surged to the 10 percent trading cap.
Baoshan Steel (SH:600019), China's biggest steelmaker, climbed 3 percent.
Jiangxi Copper Co. (SH:600362, HK:0358), China's largest producer of the metal, surged 10 percent on Shanghai and 7.04 percent on Hong Kong, as copper futures rose 3.54 percent on the Shanghai futures exhange. Tongling Nonferrous Metals Group Co. (SZ:000630) advanced 7.95 percent. Yunnan Copper Co.(SZ:000878) added 6.86 percent.
Zhongjin Gold (SH:600489), China's second-largest gold producer, surged to the 10 percent trading limit. Gold futures gained 1.97 percnent on Shanghai trading. Zijin Mining (SH:601899;HK:2899), the largest, rose 7.15 percent on Shanghai and 5.35 percent on Hong Kong. Lingbao Gold (HK:3330) added 2.89 percent.
Bank shares declined on Shanghai trading after the Shanghai Securities News reported that banks had been instructed to avoid accelerating loan growth at the end of months and quarters to meet targets, citing a China Banking Regulatory Commission document.
China finds Asia's largest iron-ore deposit, again
China announced that it has discovered Asia's largest iron-ore deposit in Benxi, Lioning provice - again. It is unclear whether this is a new deposit or a re-run of the news first published on April 30th.
The report this time round quotes reserves of 3 billion metric tons rather than 2 billion, but doesn't mention the 1,000m between the ground and the reserves that made the previous discovery less of an excitement.
Bengang Steel Plates Co. (SZ:000761), a steel maker based in Benxi, surged to the 10 percent trading cap. Angang Steel (SZ:000898;HK:0347), the largest steel maker in Liaoning province, added 7.42 percent on Shenzhen trading and 5.32 percent on Hong Kong trading.
China says it will meet WTO rules for export limits
Non-ferrous metal shares also rose after China said its raw-material export limits would meet WTO rules. It cames as a response to the US and EU announcement yesterday that they will take CHina to the WTO over the issue.
Xiamen Tungsten Co. (SH:600549), the world’s largest tungsten processor, advanced 5.34 percent. Hunan Nonferrous Metal Co.(HK:2626), which has the world's largest tungsten deposit, added 5.88 percent. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co. (SH:600111) added 5.10 percent. China Rare Earth Holdings (HK:0769) climbed 1.49 percent. Chenzhou Mining Group Co.(SZ:002155), world's second-largest antimony producer, climbed 4.28 percent.
ICBC in banking charge U-turn?
Industrial and Commercial Bank of China (SH:601398;HK:1398), China's largest lender, removed an announcement from its website that had said customers would be required to pay higher banking charges. The announcement had caused a great deal of displeasure amoung the bank's customers and it is unclear if plans have now been shelved. ICBC shares lost 1.11 percent on Shanghai trading today.
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