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Index posts longest winning streak this year

(China Daily)
Updated: 2009-03-20 07:54

China's stocks rose for a fourth day, driving the benchmark index to its longest winning streak this year, led by commodities producers on optimism the government's stimulus plan is working.

Related readings:  Asian markets mixed after Fed's $1.2t plan  Hong Kong stocks close 0.1% higher  Chinese shares add 1.89%, real estate stocks gain

Aluminum Corp of China Ltd and Zijin Mining Group Co climbed more than 4 percent. Shanghai International Port (Group) Co advanced 8.4 percent, the most in two months, after Caijing reported that the city received the central government's approval for its plan to be an international shipping hub.

The Shanghai Composite Index added 42.03, or 1.9 percent, to 2,265.76 at the close, the highest since Feb 23. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, gained 2.1 percent.

"The economy is showing signs of stabilizing," said Wu Kan, a fund manager in Shanghai at Dazhong Insurance Co. "Cyclical stocks such as metals shares will be the first to benefit once growth picks up."

The Shanghai Composite has risen 24 percent this year, the most among the 89 indexes tracked globally by Bloomberg, on optimism that record new lending and the government's 4-trillion-yuan economic stimulus plan will reverse a slump in the world's third-largest economy.

The measure is still 63 percent down from its peak in October 2007, as a record slump in exports dragged the economy to its weakest growth in seven years and eliminated the jobs of millions of migrant workers.

Premier Wen Jiabao said yesterday that the government "must play an active role in facing the crisis to prevent the economy from declining".

Aluminum Corp of China, the nation's biggest maker of the lightweight metal and also called Chalco, added 4.5 percent to 10.49 yuan. Shandong Nanshan Aluminum Co, the second-largest, jumped the maximum 10 percent to 9.14 yuan.

Shanghai Port, the operator of China's busiest harbor, surged 8.4 percent to 4.40 yuan, the steepest gain since Jan 19.

Shanghai Zhenhua Port, the world's biggest maker of container cranes, jumped 10 percent to 10.71 yuan after completing the sale of shares to its parent in exchange for assets.

HSI flat

Hong Kong shares stalled yesterday as investors sold down lender HSBC after a seven-session rally.

The benchmark Hang Seng Index was up 0.1 percent, or 13.75 points, at 13,130.92 supported by a 7 percent jump in Europe-focused fashion brand Esprit Holdings tracking a stronger euro.

Bloomberg - Reuters