China markets rally on commodities and finance shares
Chinese markets rallied, led by nonferrous metal and financial shares after the Fed said that the US had passed the worst of the recession and local press reported Beijing is not likely to raise the stamp duty on domestic stock trading.
The Hang Sang gained 2.6 percent. The China Enterprises Index, which represents top Hong Kong listed mainland Chinese stocks, was up 2.1 percent. The Shanghai Composite Index closed up 0.9 percent, with winners outnumbering losers by 490 to 432. Turnover however dropped even further to RMB138.2bn.
Taiwan's Taiex index rose 2 percent.
Mainland-listed financial shares rose 2.52 percent on average. ICBC (SH:601398, HK:1398) rose 1.8 percent in Shanghai and 2.1 percent on Hong Kong. China Construction Bank (SH:601939, HK:0939) rose 5.7 percent in Shanghai and 2.5 percent in Hong Kong.
Stamp duty on stock trading had increased 152 percent year-on-year until July however Shanghai Securities News today reported that there would likely be no further hike. Brokerage shares climbed on the news. Shenyin Wanguo (HK:0218) rose 1.9 percent. Haitong Securities (SH:600837) finished 0.7 percent up.
Non-ferrous metal shares advanced 4.73 percent on average as the 5th China International Non-Ferrous Metals Industry Exhibition kicked off today in Beijing. Jiangxi Copper (SH:600362, HK:0358) rose 8.6 percent in Shanghai and 4.3 percent in Hong Kong. Chinalco (SH:601600, HK:2600) was up 4.3 percent in Shanghai and 2.4 percent in Hong Kong. Ji Lin Ji En Nickel Industry Co. (SH:600432) and Yunnan Copper (SZ:000878) both rose to the 10 percent trading cap today.
Li Yizhong, Minister of Industrial and Information and Technology, said today that the ministry is composing a document to facilitate mergers and acquisitions in the steel industry. China's steel manufacturing capacity is currently 660 million tons, 190 million of which is unnecessary, he said. Baotou Steel (SH:600010), which is to be acquired by Baoshan (SH:600019), rose 0.8 percent today.
In Hong Kong, healthy results propped up a number of blue-chips, bringing up the index as a whole. Tencent Holdings (HK:0700), which operates China's largest instant messaging platform, lifted 4.3 percent. Hong Kong Exchanges & Clearing (HK:0388) closed 3 percent. Telecoms operator Hutchison Whampoa (HK:0013) rose 2.6 percent after posting less than expected losses on its 3G business.
China's fiscal revenue growth slows down
The Ministry of Finance yesterday announced that July fiscal revenue grew 10.2 percent year-on-year to RMB669.6bn, down from 19.6 percent in June. China's fiscal revenue has been increasing since May after declining for four straight months. Tax revenue fell 3.5 percent year-on-year in the first seven months of the year
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
