Mainland markets rise as August loans higher than expected
Hong Kong shares fell 1.8 percent, following Wall Street, as heavyweight HSBC (HK:0005) fell 3.2 percent. The Shanghai Composite Index however closed 0.6 percent up. Winning shares outnumbered losers 578 to 274 while turnover fell to RMB88bn, the lowest since March.
The China Enterprises Index, which represents top Hong Kong-listed mainland Chinese stocks, was down 1.3 percent.
News that there were RMB320bn of new loans in August, was slightly higher than market expectations of RMB300bn. The RMB320bn of new loans by Chinese banks is however the lowest this year, down from July's RMB356bn.
The mainland markets were also boosted by a Xinhua report that Premier Wen Jiabao, said the government would continue a proactive fiscal policy and a moderately loose monetary policy during a meeting with the head of the World Bank yesterday.
Director of the Development Research Center Institute of Finance, Chen Daofu, a senior official under the State Council, was quoted saying "the credit supply should be reduced in a gradual way" in the China Securities Journals today.
Bank shares rose on the mainland and fell in Hong Kong.
Minsheng Banking Corp (SH:600016), was up 3.1 percent. Shenzhen Development Bank (SZ:000001) rose 4.4 percent. Bank of Communications (SH: 601328) was up 3.4 in Shanghai and down 1.8 percent in Hong Kong. China Construction Bank (SH:601939, HK: 0939) was up 5.3 percent in Shanghai and down 1.2 percent in Hong Kong.
Beijing last night raised petrol prices by 4 to 5 percent, an amount slightly less than according to the country's price-setting scheme based on a basket of global crude prices. Airlines fell on opening this morning.
Property stocks took a hit in Hong Kong. SOHO China Ltd (HK:0410) slipped 1 percent. Sun Hung Kai Properties (HK:0016) was down 2.8 percent. Hutchison Whampoa Ltd (HK:0013) dropped 2.4 percent.
On the mainland Gemdale Corporation (SH:600383) rose 2.1 percent, Poly Real Estate Group (SH:600048) rose 3.7 percent, while China Vanke (SZ:200002) fell 2.6 percent.
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