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Chinese equities rise 1.78% on gains in heavyweights' H1 profits

(Xinhua)
Updated: 2009-08-26 15:52

China's equities rose taking the benchmark index up 1.78 percent on Wednesday's close, fueled by first-half profit gains for airlines, real estate and the 10 listed brokerage firms.

The benchmark Shanghai Composite Index advanced 51.79 points to finish at 2,967.6. The Shenzhen Component Index added 2.63 percent, or 306.85 points, to end at 11,995.03.

Combined turnover shrank to 227.73 billion yuan ($33.34 billion) from 249.13 billion yuan on the previous trading day.

Gainers outnumbered losers by 811 to 49 in Shanghai and 709 to 49 in Shenzhen.

The benchmark index opened lower in the morning, dragged down by non-ferrous metals sectors to below 2,900 at 10:30 am. It rebounded and fluctuated around 2,900 as agriculture and medicine stocks advanced. At 1:40 pm the index was up to 3,000, driven by oil companies PetroChina and Sinopec.

Agriculture stocks led the gains with eight companies rising by the daily limit. Beijing Shunxin Agriculture Co, jumped 9.12 percent to 15.19 yuan. Xinjiang Tecon Animal Husbandry Bio-Technology Co, added 6.92 percent to advance to 14.83 yuan.

Air China Ltd advanced by the daily limit to 7.92 yuan after it reported it had more than doubled first-half-year profit from a year earlier late Tuesday. The company's first-half profit grew 151 percent year-on-year to 2.93 billion yuan as fuel hedging gains helped offset weaker demand on international routes.

Brokerage shares advanced 2.57 percent after the 10 firms said their combined first-half profit increased 7 percent year-on-year to 10.43 billion yuan late Tuesday.

Related readings:  Stocks fall as Wen says economy faces uncertainties  Stocks rise, led by metal producers  Stocks rebound on healthier economic indicators  China's stocks rebound on Thursday

The benchmark Shanghai Composite Index jumped 62.5 percent from the beginning of the year to 2,959 at the end of June, fueling the profit boost. Northeast Securities, based in Liaoning province, climbed 3.22 percent to 19.98 yuan.

Poly Real Estate Co, the second-biggest developer, added 2.4 percent to 24.69 yuan after posting a 35 percent year-on-year rise in its first-half net income Wednesday, which stood at 1.39 billion yuan.

The government should continue to promote economic restructuring and change its mode as it strives to maintain high growth, because economic growth momentum was not strong enough, said the National Development and Reform Commission, the country's economic planning agency, in a report Tuesday.