Shanghai rises as China responds to US tyre tariff with poultry probe
Hong Kong stocks dropped today, tracking lower oil and copper prices and as investors locked in profits from Friday's rises. However the mainland indexes continued to rise spurred on by agriculture shares after China responded to the US-imposed tariff on Chinese tyres by announcing a dumping and subsidy probe into U.S. chicken imports.
The Shanghai Comprehensive Index rose 1.24 percent to 3026.74, closing above 3000 for the first time since August 17. Gaining shares outnumbered losers by 751 to 161. The SME Comprehensive Idex added 2.14 percent to 4725.39. However banks fell, including
Hong Kong stocks fell, led by property shares. The Hang Seng Indexdeclined 1.08 percent to 20932.20. The Hang Seng Growth Enterprises Index climbed 0.06percent to 643.37. The Hang Seng China Enterprise Index lost 0.91 percent to 12157.09.
Taiwan's TAIEX Index lost 1.09 percent to 7256.95.
The U.S. imposed a 35 percent tariff on Chinese tyres, announced after the Chinese markets closed on Friday.
Giti Tire Corp.(SH:600182), the largest Chinese tiremaker, fell to its 5 percent trading floor. Double Coin Holdings Ltd.(SH:600623), a Shanghai-based tiremaker, fell to the 10 percent trading floor.Guizhou Tyre Co.(SZ:00589) dropped 6.7 percent. Qingdao Doublestar Co.(SZ:000599) lost 6.3 percent.
China responded today by announcing a dumping and subsidy probe into U.S. imports of chicken. The news brought domestic agriculture shares saoring 4.2 percent on average, led by poultry producers.
Shandong Minhe Animal Husbandry Co. (SZ:002234),which breeds chickens, and Shanghai Dajiang (Group) Stock Co.(SH:600695), which raises chickens and processes meat products, both surged to the 10 percent trading cap.
DaChan Food Asia Ltd.(HK:3999), which makes chicken feed and breeds poultry, gained 7.3 percent. Tongwei Co.(SH:600438), a feed manufactureror, added 4.75 percent. Heilongjiang Agriculture Co.(SH:600598), a grains-grower, advanced 3.76 percent. Yuan Longping High-tech Agriculture Co.(SZ:000998), a seeds producer, also jumped 10 percent.
The Hong Kong market was depressed on global copper and oil prices, which weakened over the weekend as the dollar rebounded. China's largest copper producer Jiangxi Copper (HK:0358) dropped 1.7 percent in Hong Kong. PetroChina (HK:0857) lost 0.8 percent in Hong Kong.
The Hang Sang Property Index also declined 1.59 percent.
Skyfame Realty(Holdings)Ltd .(HK:0059) plunged 8.20 percent. ITC Corporation Limited (HK:0199) dropped 4.63 percent. Sun Hung Kai Properties Ltd.(HK:0016), the world's biggest developer, fell 2.42 percent. This weekend, six construction workers died in an elevator accident at the company's International Commerce Centre site in Kowloon. Their families will receive compensation of HK$1m each.
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