Mainland markets rise on Communist party founding anniversary, led by real estate
Today was the anniversary both of the handover of Hong Kong back to China (Establishment Day) and the birth of the Communist Party of China. The Hong Kong exchnage was closed while mainland Chinese markets celebrated with new highs led by real estate shares.
The Shanghai Comprehensive Index rose 1.65 percent to 3008.15, staying above 3000 for the first time since June 11, 2008. The Shenzhen Composite Index advanced 2.44 percent to 11848.75, the highest since June 5, 2008. The SME Comprehensive Idex added 0.61 percent to 4352.10.
Taiwan's TAIEX Index advanced 2.28 perent to 6578.97.
Guangxi Liugong Machinery Co. (SZ:000528), a Chinese maker of construction equipment, added 3.13 percent after the official Purchasing Managers’ Index increased to 53.2 in June from 53.1 in May, indicating that expansion of the manufacturing sector has lasted for four months.
Industrial and Commercial Bank of China (SH:601398) advanced 1.11 percent. Bank of Communications (SH:601328) rose 5.77 percent.
Property shares rose another 4.6 percent on average after Beijing’s land price rose again. Yesterday, the Being local government sold a piece of land near the city's south-east fourth ring road for RMB 4.06 billion, the highest price ever in Beijing - making front page in all the mainstream newspapers.
China Vanke Co. (SZ:000002), the nation’s largest listed developer, advanced 3.45 percent. Poly Realestate Co. (SH:600048), the second-largest, added 3.84 percent. Over a dozen property developers surged to the 10 percent trading cap, including Shanghai Shimao Co. (SH:600823), Chongqing Yukaifa Co. (SZ:000514), and Shenzhen Heungkong Holding Co. (SH:600162)
Angang Steel Co. (SZ:000898;HK:0347), the country’s second-biggest steelmaker by market value, jumped 8.04 percent on Shenzhen trading. Gansu Jiu Steel Group Hongxing Iron and Steel Co. (SH:600307) surged to the 10 percent trading cap.
Beijing New Building Material Public Limited Company (SZ:000786) advanced 5.26 percent. Tangshan Jidong Cement Company Limited (SZ:000401) added 3.62 percent.
Related news
- Shenzhen up 1.1pct as brokerages support mainland markets while Hong Kong falls on real estate concerns
- Mainland and Hong Kong markets fall most in weeks
- Mainland stock mixed, pharma shares up as U.S. declares H1N1 national emergency
- China markets rise as Shenzhen launches Growth Enterprise Board and hot money starts flowing in again
- China markets slip again despite 8.9pct growth figure for third quarter
- China markets down on profit taking and crude oil drop
- China markets up as Hang Seng property index surges 5.8pct and mainland financials rise gain 2pct
