China markets finish up on strong August data and continued "moderately loose" monetary policy
China's stocks rose, led by financial and property shares, on strong August data and as Premier Wen Jiabao yesterday said China would keep monetary policy "moderately loose".
The Shanghai Comprehensive Index rose 2.22 percent to 2989.79, ending the week with a gain of 4.48 percent. The SME Comprehensive Idex added 1.88 percent to 4626.59.
The Hang Seng Index advanced 0.44 percent to 21161.42. The Hang Seng Growth Enterprises Index climbed 0.40 percent to 642.98. The Hang Seng China Enterprise Index gained 0.42 percent to 12268.21.
Taiwan TAIEX Index added 0.1 percent to 7337.14.
The National Bureau of Statistics today announced today that China's industrial output grew 12.3 percent in August from a year before, at a faster pace than the 10.8 percent in July.
Retail sales also continued to grow. They were 15.4 percent higher in August year-on-year. The growth figure for July year-on-year was 15.2 percent. Defaltion, however, did not slow down, with China's consumer price index (CPI) dropping 1.2 percent in August from a year earlier.
Banks extended RMB 410.4 billion of new loans, up from 355.9 billion in July and 271.54 billion a year ago, the People's Bank of China said today.
Premier Wen also said at a conference in Dalian yesterdaythat the government will keep monetary policy "moderately loose" and fully implement stimulus spending as the world's third-biggest economy rebounds.
Mainland-listed financials gained 3.7 percent on average. The Hang Sang Financial Index added 0.53 percent. Industrial and Commercial Bank of China (SH:601398; HK:1398), the world's largest lender, advanced 3.47 percent in Shanghai and 0.85 percent in Hong Kong. China Construction Bank (SH:601939;HK:0939), the nation's second-largest, gained 4.51 percent in Shanghai and 0.32 percent in Hong Kong. Shanghai Pudong Development Co.(SH:600000) surged 9.07 percent.
Mainland-listed property shares rose more than 3 percent on average. The Hang Sang Property Index gained 0.59 percent. China Vanke Co.(SZ:000002), the largest developer, climbed 2.21 percent. Poly Real Estate Group Co.(SH:600048), the second-largest, gained 3.73 percent. Wah Ha Realty Co.(HK:0278) surged 9.09 percent.
Venture capital shares surged today at the approaching of venture market in Shenzhen. Over a dozen venture stocks surged to the 10 percent trading cap, including Leaguer Stock Co.,(SZ:000532), Shandong Luxin High-Tech Industry Co.,(SH:600783) and Shanghai Fudan Forward Science and Technology Co.,(SH:600624).
Baoshan Iron & Steel Co.(SH:600019), China's biggest steelmaker, gained 1.92 percent after the statistics bureau said urban fixed-asset investment for the eight months to Aug. 31 climbed 33 percent.
Datang International Power Generation Co.(SH:601991;HK:0991), a unit of China's biggest electricity producer, gained 1.16 percent in Shanghai trading. Domestic power generation rose 9.3 percent to a record 344.3 million megawatt-hours, according to the statistics bureau.
China Mobile (HK:0941) added 2.1 percent after Chairman Wang Jianzhou said the company has started working on a domestic listing.
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