China markets edge up as energy output rises, non-ferrous metals make gains in Shanghai
China markets advanced as power generation, taken as an indicator of economic activity, rose 5.2 percent in June from a year earlier. Non-ferrous metal producers led the rise in Shanghai while real estate shares boosted Hong Kong.
The Shanghai Comprehensive Index advanced 0.19 percent to 3189.74, ending the week with a gain of 2.34 percent. The Hang Sang Index rose 2.42 percent to18805.66, taking its weekly gain to 6.2 percent.
The Hang Sang Growth Enterprises Index slid 0.41 percent to 595.66. The Hang Sang China Enterprise Index climbed 2.24 percent to 11146.43. Taiwan's TAIEX Index added 1.04 percent to 6850.99.
However turnover dropped in Hong Kong, on a sign of deepening investors caution. Turnover today was HK$66.2bn from HK$70.9bn yesterday.
Hisense Kelon Electrical Holdings Co. (SZ:000921; HK:0921), a Chinese maker of air conditioners and refrigerators, jumped 23.57 percent on Hong Kong trading and 5 percent on Shenzhen trading. The company said it will buy stakes in several units from its parent for 1.24 RMB billion in new shares.
Property shares dropped on mainland markets but surged in Hong Kong. China Vanke Co.(SZ:000002), China's largest listed developer, declined 0.64 percent. Poly Real Estate Group Co.(SH:600048), the second-largest, dropped 1.25 percent. Hon Kwok Land Investment Co.(HK:0160) surged 8.33 percent. Guangzhou R&F Properties Co.(HK:2777) climbed 5.76 percent.
HSBC (HK: ) rose by 2 percent on the back of positive earnings reported by JPMorgan overnight.
Two succesful mainland IPOs demonstrated a strong demand for new shares,particularly among retail investors. Your-Mart Co. (SZ:002277), the biggest retailer in Hunan province, soared 94 percent from its offer price on its IPO today in Shenzhen. Hong Kong-listed company Sichuan Expressway's Shanghai IPO was 414 time subscribed, raising US$264m.
Non-ferrous metals producers rise
Seven aluminum producers, including Yunnan Aluminum Co.(SZ:000807) and Henan Zhongfu Industry Co.,Ltd (SH:600595), surged to the 10 percent trading cap today after the national statistics bureau said that aluminum output grew 6 percent from the previous month.
The bureau also said that China's non-ferrous sector made a profit of RMB 9.6bn in the first five months of this year, correcting a loss of 2 billion from the first two months.
Prices of non-ferrous metals have rallied this year thanks to China's 4-trillion stimulus plan and its strategic stockpiling of metals. Over the period, lead gained 69.17 percent on the London Metals Exchange and copper 61.79 percent.
Jiangxi Copper Co.(SH:600362;HK:0358), the country's biggest producer of the metal, climbed 7.17 percent on Shanghai and 3.46 percent on Hong Kong.
Hunan Nonferrous Metals Co.(HK:2626) advanced 1.95 percent.
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