Rising industrial shares push stocks up

THE Shanghai index gained today powered by a rally among industrial stocks.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, added 1.13 percent, or 56.69 points, to 5,091.76 at 3pm today.

Gainers in the Shanghai market outnumbered losers 691 to 77 while 78 were unchanged.

The Shenzhen Composite Index, which covers the smaller mainland stock market, climbed 1.62 percent, or 20.97 points, to 1,318.56.

Steel makers resumed a rally today that began early this week after a slight drop yesterday.

Baoshan Iron & Steel Co, China's biggest steel maker, gained 1.33 percent, or 0.22 yuan (3 US cents), to 16.72 yuan while Ma'anshan Steel Co surged 5.03 percent, or 0.45 yuan, to 9.39 yuan.

Shanghai Zhenhua Port Machinery Co, the world's biggest maker of container cranes, gained 3.15 percent, or 0.73 yuan, to 23.90 yuan. Zhenhua said it received a US$200 million contract from Taipei Port Container Terminal Corp. The company will deliver the cranes by 2009, Zhenhua said in a statement to Shanghai's stock exchange.

Its Hong Kong-listed shares jumped as much as 28 percent to 7.39 Hong Kong dollars (90 US cents) on the first day of trading today after raising HK$19.2 billion in its overseas stock sales.

Huaneng Power International Inc, the listed unit of China's largest power group, climbed 3.96 percent, or 0.52 yuan, to 13.65 yuan. Meanwhile, China Yangtze Power Co, owner of the world's biggest hydropower project, gained 2.36 percent, or 0.41 yuan, to finish at 17.79 yuan.

Chinese power producers asked the government for an electricity price increase to reflect higher coal costs, Shanghai Securities News reported today.

China Railway Group Ltd, the world's third-largest construction company, advanced 1.08 percent, or 0.09 yuan, to 8.44 yuan in Shanghai. The company made its debut in Shanghai on Monday.

Its Hong Kong-listed shares jumped as much as 30 percent to HK$7.50 on the first day of trading today after raising HK$19.2 billion in its overseas stock sales.

PetroChina Co, the nation's biggest oil company, inched up 0.61 percent, or 0.19 yuan, to 31.31 yuan. PetroChina said it increased diesel output last month to avert shortages on the domestic market during winter.

The government will impose 60 billion yuan in windfall taxes on the nation's oil producers. That is 33 percent more than the 45 billion yuan they paid last year, according to the country's top economic planner.

Blue chips in the bank and real estate sectors rebounded this afternoon from a weak performance in the last two trading days as China said on Wednesday that it will shift monetary policies "from prudent to tight" next year to keep the hyperactive economy from overheating.

Industrial & Commercial Bank of China Ltd, the nation's biggest listed lender, gained 0.24 percent, or 0.02 yuan, to 8.36 yuan. Beijing North Star Company jumped 2.83 percent, or 0.34 yuan, to 12.36 yuan.

China plans to shift to a "tight'' monetary policy next year to prevent the economy from overheating and curb inflation, according to the Central Economic Work Conference that ended Wednesday. It is held annually in December to set economic policies and targets for the following year.