China markets rise as Shenzhen launches Growth Enterprise Board and hot money starts flowing in again
China markets rose, led by commodity, financial and auto shares as the Shenzhen Growth Enterprises Board hosted its opening ceremony. Trading on the board will start on Monday.
According to Hexun.com, US$40bn of speculative "hot money", calculated by subtracting the trade surplus and foreign direct investment from total foreign currency reserves, flowed into China in September compared to none in August.
The Shanghai Comprehensive Index advanced 1.9 percent to 3107.85, ending the week with a gain of 4.4 percent, the third weekly gain in a row. The Hang Seng Index climbed 1.7 percent to 22589.73, ending the week with a 3 percent gain. The Hang Seng China Enterprise Index rose 2.8 percent to 13316.02. Taiwan's TAIEX Index added 0.5 percent to 7649.28.
PetroChina Co.(SHA:601857; HKG:0857), the nation's largest oil producer, gained 1.8 percent in Shanghai trading and 3.6 percent in Hong Kong trading. China Shenhua Energy Co. (SHA:601088; HKG:1088), the country's largest coal miner, climbed 3.2 percent in Shanghai and 3 percent in Hong Kong.
Aluminum Corporation of China (SHA:601600; HKG:2600), the nation's largest producer of the light metal, advanced 3.3 percent in Shanghai trading and 2.1 percent in Hong Kong trading.
Mainland listed financial shares advanced an average of 2.3 percent and the Hang Sang Finance Index gained 2.4 percent on expectation that the Renminbi will appreciate against world currencies.
Banks rose as China's banking regulator ordered that financial institutions undergo quarterly "stress tests' to improve risk management.
Industrial and Commercial bank of China (SHA:601398; HKG:1398), the nation's largest lender, added 2 percent in Shanghai and 2.8 percent in Hong Kong. Bank of Communications Co. (SHA:601328; HKG:3328), the fourth-biggest, climbed 3.6 percent in Shanghai and 4.6 percent in Hong Kong. HSBC (HKG:0005), Europe's largest bank, gained 1.6 percent.
Mainland-listed auto shares advanced 2.7 percent on average, on news that the government will introduce further stimulus measures for auto industry. Caijing magazine today reported that China's vehicle sales may reach 13 million units this year.
Shenyang Jinbei Automotive Co.(SHA:600609), Anhui Ankai Automobile Co.(SHE:000898) and Zhongtong Bus (SHE:000957) jumped to the 10 percent trading cap. Beiqi Foton Motor Co. (SHA:600166) , China's biggest commercial-vehicle maker, advanced 2.8 percent.
In Hong Kong market, Brilliance China Automotive Holdings (HKG:1114) surged percent, Great Wall Motor Co. (HKG:2333) rose 4.3 percent, Denway Motors (HKG:0203) advanced 3.2 percent. Geely Automobile Holdings (HKG:0175) climbed 4.1 percent, Dongfeng Motor Group Co.(HKG:0489), gained 7 percent.
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