China markets rise on investor confidence, led by banks and property
China stocks advanced, led by property and financial shares, on optimism that recovery is underway.
The Shanghai Comprehensive Index added 1.99 percent to 2778.59. The SME Comprehensive Index climbed 0.44 percent to 4242.39.
The Hang Seng Index advanced 1.02 percent to 18576.47. The Hang Seng Growth Enterprises Index added 1.56 percent to 562.85. The Hang Seng China Enterprise Index lost 1.76 percent to 10825.2.
Taiwan's TAIEX Index slid 0.8 percent to 6893.14.
PetroChina Co. (SH: 601857;HK:0857), China’s largest oil producer, advanced 1.12 percent on Shanghai trading and 1.88 percent on Hong Kong trading.
Aluminum Corp. of China (SH:601600;HK:2600), the nation’s biggest producer of the metal, climbed 3.97 percent on Shanghai and 5.32 percent on Hong Kong.
Zijin Mining Group Co. (SH:601899;HK:2899), the nation’s largest gold producer, climbed 4.18 percent on Shanghai trading and 5.51 percent on Hong Kong. Zhongjin Gold Corp. (SH:600489), the second largest, surged to the 10 percent trading cap. Shandong Gold Mining Co.(SH:600547), the third biggest, rose 9.62 percent.
Banks make large gains
Shanghai Pudong Development Bank (SH:600000), the Chinese partner of Citigroup Inc., surged to the 10 percent trading cap, the most since November 10.
Industrial & Commercial Bank of China Ltd.(SH:601398;HK:3198), the world's largest lender by market value, added 4.22 percent on Shanghai trading and 1.02 percent on Hong Kong trading, following yesterday's falls.
China Construction Bank Corp.(SH:601939;HK:0939), rose 3.63 percent on Shanghai and 1.38 percent on Hong Kong.
Property developers surge on rebound expectations
Homebuilders will be among the best bets as private investment drives a second-half rebound in the nation’s economy, Shanghai securities reported today, quoting JPMorgan Chase & Co. China strategist Frank Gong.
China Securities said today that developers are planning to raise RMB 20 billion on the stock markets and 11 billion on bond markets, indicating that they will invest more as the housing market "warms up".
Mainland-listed property developers advanced 5 percent on average. The Hang Sang Property Index added 1.26 percent.
China Vanke Co. (SZ:000002), the largest developer listed in mainland markets, rose 6.07 percent. Poly Real Estate (SH:600048), the second-largest, advanced 8.99 percent. Beijing Capital Development Co.（SH:600376), Suning Universal Co.,（SZ:000718）and several other developers surged to the 10 percent trading cap. Shui On Land（HK:0272）rose 8.76 percent. Hopson Development Holdings（HK:0754）added 4.18 percent.
Construction material shares also advanced. Southern Materials Co.(SZ:000906) surged to the 10 percent trading limit. Beijing New Building Materials Public Limited Company（SZ:000786）advanced 6.91percent. Wuhu Conch Profiles and Science Co., Ltd（SZ:000619）rose 6.1 percent。
Maanshan Iron and Steel Company Limited（SH: 600808；HK:0323）surged 6.99 percent on Shanghai and 15.37 percent on Hong Kong. Shanghai Allied Cement Limited（HK:1060）surged 9.62 percent. China Zhongwang Holdings Ltd.（HK:1333）rose 6.91 percent.
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