China markets up as June auto sales up 36pct
China
markets rose, led by automakers, after passenger-vehicle sales rose 48 percent
in June. The Shanghai Comprehensive Index advanced 1.37 percent to 3123.03. The
SME Comprehensive Index climbed 2.49 percent to 4571.57.
The
Hang Seng Index added 0.39 percent to 17790.59. The Hang Seng Growth
Enterprises Index rose 0.64 2.36 percent to 570.12. The Hang Seng China
Enterprise Index gained 0.64 percent to 10641.09. Taiwan's
TAIEX Index rose 1.20 percent to 6748.18. Industrial
and Commercial Bank of China (SH:601398; HK:1398), world’s largest lender, slid
0.19 percent on Shanghai trading and 0.58 percent on Hong Kong trading. The
country’s new loans last month totaled RMB 1.53 trillion, the central bank said
on its Web site late yesterday. First-half lending rose to a record RMB 7.37
trillion, more than three times the level a year earlier. Sinopec
(SH:601386;HK:0386), Asia’s largest refiner, gained 3.53 percent on Shanghai
and 3.86 percent on Hong Kong, as crude oil prices dropped. Airlines
also gained on the low oil price. Air China Ltd.(SH:601111;HK:0753), the
nation’s largest international carrier, rose 5.4 percent on Shanghai and 2.05
percent on Hong Kong. China Southern Airlines Co. (SH:600029;HK:1055), the
largest carrier by fleet size, added 3.16 percent on Shanghai and 2.48 percent
on Hong Kong. Auto shares surge on
36 percent sales increase Chinese
motorists bought 872,900 cars, sport-utility vehicles and other passenger
vehicles last month, the China Association of Automobile Manufacturers said in
a statement. Overall auto sales in June, including buses and trucks, rose 36
percent from a year earlier to 1.14 million. SAIC
Motor Co.(SH:600104), the nation’s largest carmaker, climbed 8.63 percent. FAW
Car Co. (SZ:000800) and Tianjin Faw Xiali Automobile Co. (SZ:000927) surged to
the 10 percent trading limit. Dongfeng
Motor Group Co. (SH:600006; HK:0489), China’s third-largest automaker, climbed
2.95 percent on Shanghai and 8.96 percent on Hong Kong. Denway Motors (HK:0203)
surged 8.01 percent. Brilliance Automotive Holdings (HK:1114) advanced 6.74
percent. Defense shares surge
on signs of consolidation plans Luoyang
Bearing Science and Technology Co. (SZ:002046), a military supplier, surged to
the 10 percent trading cap right after trading began in the morning. The
company said today that it has been allowed to acquire shares of its mother
company by issuing new shares, interpreted as a move by China to stimulate
consolidation of its defense suppliers. Defense
shares surged over 2 percent on average. China North Optical-Electrical
Technology Co. (SH:600435) and Xi' An Aircraft International Co.( SZ:000768)
also surged 10 percent. Jiangxi Hongdu Aviation Industry Co. (SH:600316) added
5.01 percent.
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