Wed, October 20, 2010
Business > Markets

China's stocks close up Wednesday led by coal producers

2010-10-20 09:39:57 GMT2010-10-20 17:39:57 (Beijing Time)  Xinhua English

BEIJING, Oct. 20 (Xinhua) -- Chinese shares rose for a second consecutive day Wednesday, led by coal producers on strong earnings.

The benchmark Shanghai Composite Index edged up 0.07 percent, or 2.10 points, to close at 3,003.95.

The Shenzhen Component Index climbed 1.23 percent, or 159.81 points, to finish at 13,130.01.

Combined turnover expanded to 450.8 billion yuan (67.68 billion U.S. dollars) from 344.8 billion yuan on the previous trading day

Losers outnumbered gainers by 479 to 398 in Shanghai and 547 to 523 in Shenzhen.

Coal producers advanced after Anhui Hengyuan Coal-Electricity Group Co. announced late Tuesday that its net profit for the first three quarters this year posted a 112.52 percent rise to 870 million yuan.

The net profit for the third quarter jumped 92.54 percent year on year to 350 million yuan, the company said in its statement filed to the Shanghai stock exchange.

The company's stock price rose by the daily limit of 10 percent to 48.71 yuan. Datong Coal Industry Co. was also up by the daily limit to 23.82 yuan.

Stocks of sugar producers contributed to the market gains after sugar futures prices hit a record high of 6,450 yuan per tonne on Wednesday.

Nanning Sugar Industry Co. rose by the daily limit to 25.52 yuan. Guangxi Guitang (Group) Co. also jumped by the daily limit to 14.47 yuan.

The gains led by coal producers offset losses by property developers after China's central bank unexpectedly announced late Tuesday a rise of its benchmark one-year lending and deposit rate of 0.25 percentage points effective from Wednesday.

It was the first increase in interest rates in almost three years. Although the interest hike mainly targeted inflation, it would affect the property market, analysts said.

Su Xuejing, an analyst with the Changjiang Securities, said the surprise move by the central bank was a "new blow" to the property market after the central government ordered a halt to loans for third home purchases and a rise in down payments on Sept. 29.

A higher interest rate on loans also meant higher costs for both home buyers and developers, she said.

China Vanke, the country's largest listed property developer by market value, dropped 6.11 percent to 8.92 yuan, and Poly Real Estate Group Co. the second biggest, slumped 7.78 percent to 13.98 yuan.

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