Auto shares push China markets higher
China markets finished slightly higher today, led by auto and related shares. Financial shares pushed the Hang Sang Index up 0.5 percent to a 14-month pre-Olympic high. The Shanghai Comprehensive Index added 0.3 percent to 2979.79. The Hang Seng China Enterprise Index, representing large mainland companies listed in Hong Kong, advanced 0.64 percent to 12859.71.
Taiwan's TAIEX Index gained 0.19 percent to 7710.40.
The Hang Sang Financial Index added 0.9 percent as bank shares advanced on expanded new loans in September.
Industrial and Commercial Bank of China (SHA:601398; HKG:1398), the world's largest lender, advanced 0.32 percent in Hong Kong. China Construction Bank (SHA:601939; HKG:0939), China's second-largest bank, gained 1.5 percent in Hong Kong. Bank of China (SHA:601988; HKG:3988), the third-largest, gained 1.8 percent in Hong Kong.
Banks extended RMB516.7bn of local currency loans, compared with RMB410.4bn in August, the People's Bank of China said yesterday. M2, the broadest measure of money supply, grew a record 29.3 percent from a year earlier.
HSBC Holdings Plc (HKG:0005), Europe's biggest bank, added 1.30 percent.
Auto shares rose on September sales, followed by tire and steel makers. China's passenger-car sales surged 84 percent to 1.015 million last month, the China Association of Automobile Manufacturers said Tuesday. Monthly sales surpassed 1 million units for the first time.
Mainland-listed auto shares gained 2.1 percent on average. SAIC Motor Corp. (SHA:600104), China's largest carmaker, gained 2.6 percent. Dongan Heibao Co.(SHA:600760) surged 9.2 percent. The small car producer said yesterday that its profit in the first three quarters will increase by 3000 percent thanks to China's stimulus plans.
Jiangsu Yueda Investment Co. (SHA:600805) advanced 7.2 percent. Yangzhou Yaxing Motor Coach Co.(SHA:600213) gained 6 percent.
Tire makers Double Coin Holdings (SH:600623) and Aeolus Tyre Co.(SH:600469) surged to the 10 percent trading cap. Qingdao Doublestar Co.(SZ:000599) gained 8.2 percent. Guizhou Tire Co. (SHE:000589) advanced 7.1 percent.
Mainland-listed steel shares gained 1.8 percent on average. Laiwu Steel Co.(SHA:600102), a steel maker in east China's Shangdong Province, surge 9.4 percent. Iron and Steel Co. (SHA:601003) climbed 6.5 percent.
In Hong Kong, Brilliance China Automotive Holdings Co. (HKG:1114) surged 12.2 percent, Great Wall Motor Co. (HKG:2333) gained 8.2 percent and Geely Automobile Holdings (HKG:0175) advanced 5.5 percent.
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