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Chinese stocks rebound on power consumption figures

(Xinhua)
Updated: 2009-09-14 15:49

Chinese equities climbed to above 3,000 point on Monday, approaching a one-month high after the index closed at 3,046.97 on August 17, as the country's power consumption figure showed signs of improved growth in the economy.

The benchmark Shanghai Composite Index rose 1.24 percent, or 36.95 points to finish at 3,026.74.

The Shenzhen Component Index rose 2.39 percent, or 288.8 points, to end at 12,385.06.

Related readings:  August power consumption up 8.22%  China's growth drives regional development  More factories experience labor crunch

Total turnover expanded to 256.37 billion yuan ($37.54 billion) from 215.33 billion yuan on the previous trading day.

Gainers outnumbered losers by 811 to 48 in Shanghai and 730 to 29 in Shenzhen.

Positive power consumption data from China's National Energy Administration (NEA) on Monday boosted investor confidence. The country's total power consumption in the first eight months rose 0.36 percent year on year to 2.34 trillion kilowatt hours, which is the first year-on-year growth in 2009, said NEA.

Brokerage led the gains as the country's securities regulator said Monday it will review applications of the first seven IPOs for listing on the Growth Enterprise Market (GEM), a Nasdaq-style market in China, on Thursday. Northeast Securities advanced 8.31 percent to 39.5 yuan. Sinolink Securities gained 4.99 percent to end at 22.52 yuan.

Rubber shares slumped amid widespread gains across the board, after US President Barack Obama said the US would impose tariffs on imported Chinese automobile tires. A report from the Los Angeles Times on Saturday said, within 15 days, the US would add a duty of 35 percent in the first year, 30 percent in the second and 25 percent in the third on passenger vehicle and light-truck tires from China. As a result Guizhou tire Co, lost 6.68 percent to finish at 14.95 yuan. Aeolus tire Co sank 3.31 percent to 12.84 yuan.

The benchmark index added 4.5 percent last week as industrial production and investment growth expanded. Friday's report from the central bank said new yuan-denominated loans are expected to top 10 trillion yuan this year as lending in August continue to rise to 410.4 billion yuan, up more than 50 billion yuan from July.