Economy

China stocks rally as tightening worries ease

(Xinhua)
Updated: 2011-06-24 19:24

BEIJING - Chinese stocks gained for the fourth straight day Friday as slower manufacturing growth eased investors' worries of further tightening measures.

Related readings: China still has space to tighten monetary policy further

The benchmark Shanghai Composite Index jumped 2.16 percent, or 57.96 points, to close at 2,746.21. The index has gained 3.91 percent this week.

The Shenzhen Component Index rose 1.87 percent, or 220.76 points, to finish at 11,996.08.

Combined turnover rose to 245 billion yuan ($37.84 billion) from 147.55 billion yuan the previous trading day.

Gainers outnumbered losers 877 to 31 in Shanghai and 1,224 to 42 in Shenzhen.

China's manufacturing activities stagnated in June in response to 10 months of consecutive tightening moves, HSBC Holdings PLC said Thursday.

HSBC's preview of China Purchasing Managers Index for the manufacturing sector stood at 50.1 in June, 1.5 percentage points lower than for May and hitting an 11 month low. A figure above 50 indicates economic expansion.

Banks and brokerages led the rise. Shanghai Pudong Development Bank Co, Ltd rose 3.7 percent to close at 10.1 yuan while Industrial Bank Co, Ltd rose 2.98 percent to 13.84 yuan.

Brokerages of Northeast Securities Co., Ltd. and Industrial Securities Co, Ltd both rose by the 10-percent daily limit to close at 18.7 yuan and 16.87 yuan, respectively.

Shares of shipbuilders also rallied with CSSC Jiangnan Heavy Industry Co, Ltd up by the 10-percent daily limit to 27.26 yuan. Guangzhou Shipyard International Company Limited rose 6.17 percent to stand at 29.09 yuan.

Shares of aircraft manufacturers rose 4.48 percent across the board. Xi'an Aero-engine PLC rose by the 10-percent daily limit to 15.95 yuan while Hafei Aviation Industry Co, Ltd rose 7.78 percent to finish at 26.17 yuan.