Shanghai stocks rally across the board

2007-12-27 00:56:43 Shanghai Daily

THE Shanghai index climbed higher today thanks to rising technology stocks and industrial shares.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, added 1.44 percent, or 75.54 points, to 5,308.89 at 3pm today.

Winners in the Shanghai market outnumbered losers 503 to 239 and 104 were unchanged.

The Shenzhen Composite Index, which covers the smaller mainland stock market, gained 1.42 percent, or 20.41 points, to 1,453.47.

China United Telecommunications Corp, which controls the nation's second-largest cell-phone operator, led the rising technology stocks on speculation revenue will increase after the government approved a plan to build a new-generation broadband network for mobile phones.

China United jumped 8.28 percent, or 0.94 yuan (13 US cents), to close at 12.29 yuan.

China's government has supported the development of TD-SCDMA mobile phone technology to compete with W-CDMA and CDMA2000. It is poised to award licenses for networks to offer so-called 3G phone services during the 2008 Olympic Games in Beijing.

The technology represents "a major thrust in the future of China's information technology,'' China's State Council said in a statement yesterday, without giving details.

"The implementation of the technology raises the competitiveness and innovation of China's wireless communications industry.''

Industrial stocks also contributed to the rally today after the National Statistics Bureau said Chinese industrial companies' profits rose 36.7 percent in the first 11 months, outpacing the gain a year earlier.

Datang Power, China's second-biggest electricity producer by market value, surged 9.74 percent, or 1.83 yuan, to 20.62 yuan, extending a seven-day rise. The company jumped 8.55 percent yesterday.

Aluminum Corp of China Ltd, known as Chalco and the nation's biggest maker of the lightweight metal, advanced 1.38 percent, or 0.55 yuan, to 40.53 yuan. Parent Aluminum Corp of China will probably post a record profit of more than 20 billion yuan this year, China Nonferrous Metals News reported, citing company data.

The statistics bureau said today that combined industrial net income climbed to 2.3 trillion yuan. That's more than the almost 31 percent increase through November 2006. Sales jumped 27.6 percent to 35.5 trillion yuan.

Sinopec Shanghai Petrochemical Co climbed as it resumed trading today after the lock-up period on shares held by its parent was doubled to 72 months.

Shanghai Petrochemical, China's biggest maker of ethylene, jumped 4.98 percent, or 0.76 yuan, to finish at 16.02 yuan.

The company's parent China Petroleum & Chemical Corp, Asia's biggest oil refiner, also known as Sinopec, will be banned from selling shares in the company and another subsidiary, Sinopec Yizheng Chemical Fibre Co, for 72 months after its holdings are converted into tradable shares, up from the previous 36 months, the two subsidiaries said yesterday.

Sinopec will also offer small investors of the two units 3.2 shares for every 10 owned, according to the statements. Sinopec's shares added 1.69 percent, or 0.40 yuan, to 24.01 yuan.

Airlines recovered from yesterday's losses and climbed this morning after the yuan rose the most since China ended a fixed exchange rate to the US dollar in 2005 as the central bank sought to curb inflation.

Air China, the world's biggest airline by market value, was up 2.34 percent, or 0.62 yuan, to 27.14 yuan. China Eastern sprinted 4.29 percent, or 0.82 yuan, to 19.94 yuan.

The yuan surged as high as 7.3162 to the US dollar today in Shanghai, according to the China Foreign Exchange Trade System.