China markets up on improving export data and weak dollar
Chinese markets rose today on the back of a weak US dollar and better than expected export data. Construction and real estate shares led the rises after China State Construction Engineering Corp. and Gemdale both announced positive sales figures. The Shanghai Comprehensive Index added 1.2 percent to 2970.53, the highest in four weeks. The Hang Seng Index added 2 percent to 21886.48.
The Hang Seng China Enterprises Index, representing mainland blue-chips listed in Hong Kong, advanced 2.2 percent. Taiwan's TAIEX Index gained 1.31 percent to 7695.75.
The dollar hit a 14-month low against the Euro overnight, encouraging liquidity flows into Asian markets.
The decline in China's exports slowed down with September exports just 15.2 percent less than last year, compared to a 23 percent fall in August. Analysts said exports could stop declining by the end of this year and increase 10 percent in 2010.
Shanghai International Port (Group) Co.(SHA:600018), advanced 1.1 percent. The operator of the mainland's busiest harbor said September cargo volume rose for the first time in 11 months. China Cosco Holdings Co. (SHA:601919; HKG:1919), the world's largest dry-bulk ship operator, added 0.9 percent in Shanghai trading and 0.6 percent in Hong Kong trading.
China Shipping Container Lines Co.(SHA:601866; HKG:2866), the country's second-largest carrier of sea-cargo boxes, advanced 2.2 percent in Shanghai and 1 percent in Hong Kong.
China State Construction Engineering Corp. (SHA:601668), China's largest housing contractor, surged to the 10 percent trading cap after announcing that property sales for the first three quarter doubled year-on-year. China State Construction Internatinoal Limited (HKG:3311), its Hong Kong listed subsidiary., climbed 8.3 percent.
Gemdale Corp. (SH:600883), China's fourth-largest developer, rose 5.8 percent after the builder reporting a 57 percent increase in September sales.
Mainland-listed property shares gained 3.3 percent on average while the Hang Sang Property Index climbed 1.6 percent. Mainland-listed construction shares climbed 4.7 percent.
Real estate remains China's main driver of growth with analysts predicting houses prices are unlikely to fall in 2010. In the first eight months of 2009, China's house sales increased 42.9 percent year on year in volume (by square metre) and by 69.9 percent in revenue, according to China's Statistics Bureau.
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
