China bourses up as Beijing vows to steady markets
Hong Kong and mainland markets rose today following comments from a senior official indicating Beijing would step in to support financial markets.
The Shanghai Composite Index surged 4.8 percent. Winning shares beat losers by 919 to 18, while turnover picked up to RMB65bn from yesterday's 47.2 billion yuan,
The Hang Seng Index finished up 1 percent. The China Enterprises Index, which represents top Hong Kong listed mainland stocks, was up 2.1 percent.
State press today ran comments from China Securities Regulatory Commission Vice Chairman Liu Xinhua that the regulator would act to promote the steady development of the country's financial markets.
The comments were seen as further evidence that the government will take steps to support shares, with many speculating that might include a suspension of initial public offerings. They follow similar comments yesterday from a senior official under the State Council and on Tuesday evening from Premier Wen Jiabao.
Property developers lead the rises, with the Hong Kong HIS Property Index up 1.46 percent. China Resources Land (HK:1109) was up 8.2 percent. Gemdale Corporation (SH:600383) was up 8.6 percent. Shimao Property Holdings (HK:0813) rose 7.8 percent.
In continuing gains following Beijing's fuel price hike on Tuesday evening, Sinopec (SH:600028, HK:0386), rose 5 percent in Shanghai and 1.7 pecent in Hong Kong and PetroChina (SH:601857, HK:0857) was up 3.2 percent in Shanghai and 0.8 percent in Hong Kong.
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