Markets

Soaring car sales drive up equities

(China Daily)
Updated: 2010-02-11 13:11

SHANGHAI: China's stocks rose, driving the benchmark index to its biggest gain in a week, as commodity producers and automakers rose after raw material prices rallied and the nation's car sales more than doubled last month.

China Shenhua Energy Co, the nation's top coal producer, added 1.7 percent. China COSCO Holdings Co, the world's largest operator of dry-bulk ships, advanced 1.4 percent as the nation's exports climbed in January. SAIC Motor Corp, the largest carmaker, climbed 3.4 percent as total vehicle sales surged to a record. China Life Insurance Co paced gains for insurers after Morgan Stanley recommended them over banks.

The Shanghai Composite Index rose 33.66, or 1.1 percent, to close at 2,982.5, paring its 2010 loss to 9 percent. The nation's markets will be shut next week for the Lunar New Year holidays. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, gained 1.4 percent to 3,214.13.

"The economy is still in good shape," said Zhao Zifeng, who helps oversee about $10.2 billion at China International Fund Management Co in Shanghai. "The sentiment is still on the cautious side. We are going to have a week-long holiday next week and investors obviously want to avoid any uncertainties arising from overseas."

Shares worth 68.4 billion yuan changed hands on the Shanghai stock market yesterday, according to data compiled by Bloomberg. That's the lowest since Sept 30, the last trading day before October's week-long National Day holiday.

China's exports jumped 21 percent in January from a year earlier and imports climbed a record 85.5 percent, the customs bureau said yesterday. The export increase was less than the median 28 percent estimate in a Bloomberg News survey of economists. The gain was influenced by the week-long Lunar New Year holiday, which was in January last year and is in February in 2010.

Hang Seng jumps

Hong Kong stocks rose for a second day after the mainland's exports gained last month and as automakers climbed on higher sales.

Geely Automobile Holdings Ltd soared 14 percent after the automaker said January sales climbed to a record. China Shipping Development Co, a dry-bulk shipment operator, jumped 6.2 percent. COSCO Pacific Ltd, which has port operations in Greece, surged 5.9 percent. Most shares in the Hang Seng Composite Index gained on growing signs officials in Europe will help Greece avoid defaulting on its debt.

The Hang Seng Index climbed 0.7 percent to close at 19,922.22, after falling as much as 0.6 percent.

The Hang Seng China Enterprises Index, which tracks the H shares of Hong Kong-listed mainland companies, added 1.3 percent to 11,345.64.