Markets

Hainan stocks climb most on tourism project

By Qiang Xiaoji (chinadaily.com.cn)
Updated: 2010-02-05 16:51

Stocks in Hainan yesterday soared by 7.71 percent on the construction of the Mangrove Tree Resort in the coastal city of Sanya, topping China's stock market, the Beijing News reported today.

More than half of the shares related to Hainan rose by the 10 percent daily limit yesterday, due to investors' speculation that the government plans to turn Hainan into a top international tourism destination, which also spurred local property boom recently.

Lawton Development Co, which mainly operates hotels, extended the biggest rally among all the Hainan concept stocks. From Jan 4 when the central government announced the Hainan tourism construction plan till now, Lawton Development's stock price jumped from 6.59 yuan ($0.97) to close at 16.26 yuan yesterday, capping a 146.74 percent surge.

Hainan Expressway Co, which mainly constructs and maintains expressways in the province, and Haikou Agriculture & Industry & Trade (Luoniushan) Co, a Hainan-based developer, almost doubled in stock prices, gaining 99.82 percent and 85.88 percent respectively in 2010.