Shanghai stocks benefit from rising home prices

2013-01-05 02:26:43 GMT2013-01-05 10:26:43(Beijing Time)

Shanghai stocks ended higher on the first trading day of 2013, boosted by property developers as home prices rose for a seventh straight month in December.

The Shanghai Composite Index gained 0.35 percent to 2,276.99 points.

The average new home price in 100 major cities across China rose 0.23 percent from a month earlier to 9,715 yuan (US$1,542) per square meter last month, the China Index Academy said in a report yesterday.

The price rose a marginal 0.03 percent from a year earlier, snapping an eight-month year-on-year decline, according to the report.

Bohai Securities said in a research note that the easing monetary policy in the first half of 2012 and the relaxation in home restrictions by some local governments contributed to the recovering real estate sector.

The housing sector will be among the first to stabilize as China's economy begins to rebound. The brokerage said the growth rate of property investment and home sales are both starting to improve.

Poly Real Estate, China's second-largest listed developer, advanced 4.3 percent to 14.19 yuan. Gemdale Corp added 1.3 percent to close at 7.11 yuan.

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