China markets up as officials nurse confidence in economic growth and real estate
China markets rose, led by commodity and property shares, as oil and metal prices advanced and confidence rose in China's economic growth and housing market.
"China's GDP growth for the first three quarters will be between 7 and 8 percent and the yearly figure is very likely to reach 8 percent," Xiong Bilin, an inspector with the National Development and Reform Commission, said at a news conference today.
The Shanghai Comprehensive Index added 2.1 percent. The Hang Seng Index added 1.2 percent. The Hang Seng China Enterprises Index, representing blue-chip mainland companies listed in Hong Kong, advanced 1.5 percent. Taiwan's TAIEX Index gained 0.5 percent.
Chen Huaiming, director of The Ministry of Housing and Urban-rural Development's Policy Research Center, defending China's real estate market, yesterday told local press: "China's houses are getting more solid, there is no bubble except those in the hollow bricks." He also denied rumors of a second housing reform saying that neither short-term plans nor the twelfth five-year plan from 2011 will make changes to the present housing policies.
Mainland-listed property shares gained 5.4 percent on average and the Hang Sang Property Index advanced 1.37 percent.
China Vanke Co. (SHE:000002) China's largest developer by market value, climbed 6.84 percent. Poly Real Estate Group Co. (SHE:600048), the second-largest , added 4.94 percent. Beijing Dalong Weiye Real Estate Development Co. (SH:600159) and seven other developers surged to the 10 percent trading cap. SRE Group (HKG:1207) surged 11.54 percent. Henderson Land Development Co.(HKG:0012), the Hong Kong-based company controlled by billionaire Lee Shau-kee, climbed 2.05 percent.
PetroChina Co.(SHA:601857;HKG:0857), the nation's largest oil producer, advanced 1 percent in Shanghai trading and 3 percent in Hong Kong trading as crude oil approached 80 dollars a barrel.
Mainland-listed nonferrous metal shares climbed 5.7 percent on average and steel shares gained 3.1 percent after metals futures advanced in Shanghai.
Jiangxi Copper Co. (SHA:600362; HKG:0358), China's biggest producer of the metal, climbed 7.43 percent in Shanghai trading and 2.48 percent in Hong Kong trading. Shanghai copper futures advanced 1.4 percent today.
Aluminum Corp. of China (SHA:601600; HKG:2600), the nation's biggest producer of the metal, gained 5.7 percent in Shanghai and 1.7 percent in Hong Kong. Shanghai aluminum futures gained 0.4 percent.
Angang Steel Co. (SHE:000898; HKG:0347), China's second-largest steel maker, gained 4.9 percent in Shenzhen trading and 2.1 percent in Hong Kong. Shanghai deformed steel bar futures climbed 2.2 percent.
Zijin Mining (SHA:601899; HKG:2899), the country's largest gold producer, rose 1.9 percent in Shanghai and 2.8 percent in Hong Kong. Zhongjin Gold (SHA:600489), the second-largest, advanced 2.8 percent.
Inner Mongolia Baotou Steel Rare-earth (Group) Hi-tech Co.(SHA:601111) surged to the 10 percent trading cap. China Rare Earth Holdings (HKG:0769) rose 8.2 percent.
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