Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200811/20081111/article_380222.htm
Developers buoy market higher at midday on rates speculation
Created: 2008-11-11 12:05:55
Author:Lydia Chen
SHANGHAI’S key stock index edged up in the morning session, led by developers, as a report showed inflation cooling a day after a 4 trillion yuan (US$586 billion) government stimulus package triggered the benchmark index's biggest jump in seven weeks.
The benchmark Shanghai Composite Index jumped 0.36 percent, or 6.78 points, to 1,881.58 points at 11:30am.
Gainers outnumbered losers 546 to 234 and 41 did not change.
The Shenzhen Composite Index, which tracks the smaller domestic market, was up 1.44 percent, or 7.14 points, to 504.49 points.
China Vanke Co and Poly Real Estate Group Co, the nation's two biggest developers, both jumped on speculation the government has further room to cut borrowing costs.
China Vanke, the biggest developer, added 5.71 percent to 6.48 yuan (US cents) while Poly advanced 5.81 percent to 14.93 yuan.
China’s consumer prices in October dropped to a 17-month low of 4 percent, keeping a downward momentum that gave policy makers more room to stimulate economic growth.
The Consumer Price Index, the main gauge of inflation, grew 4 percent from a year earlier last month, said the National Bureau of Statistics this morning.
The slowing CPI, as well as a moderating 6.6-percent Producer Price Index, which measures the factory-gate inflation, indicated the easing inflationary pressure and paved the way for policy makers to carry out more aggressive measures to warm up the domestic economy, analysts said.
China has just announced a 4-trillion-yuan stimulus package to offset adverse global economic conditions.
Elsewhere, China Eastern Airlines Corp, the nation's third-largest carrier by fleet size, said it is taking about a 10th of its fleet out of service as the global economic slowdown crimps travel in the world's most populous nation. The stock rose 2.64 percent to 3.11 yuan.
Haitong Securities Co, the country's largest listed brokerage by market value, lost 3.55 percent to 13.30 yuan. The company said yesterday that it received approval to sell as many as 6 billion units of asset management products to expand its income sources.
The benchmark Shanghai Composite Index jumped 0.36 percent, or 6.78 points, to 1,881.58 points at 11:30am.
Gainers outnumbered losers 546 to 234 and 41 did not change.
The Shenzhen Composite Index, which tracks the smaller domestic market, was up 1.44 percent, or 7.14 points, to 504.49 points.
China Vanke Co and Poly Real Estate Group Co, the nation's two biggest developers, both jumped on speculation the government has further room to cut borrowing costs.
China Vanke, the biggest developer, added 5.71 percent to 6.48 yuan (US cents) while Poly advanced 5.81 percent to 14.93 yuan.
China’s consumer prices in October dropped to a 17-month low of 4 percent, keeping a downward momentum that gave policy makers more room to stimulate economic growth.
The Consumer Price Index, the main gauge of inflation, grew 4 percent from a year earlier last month, said the National Bureau of Statistics this morning.
The slowing CPI, as well as a moderating 6.6-percent Producer Price Index, which measures the factory-gate inflation, indicated the easing inflationary pressure and paved the way for policy makers to carry out more aggressive measures to warm up the domestic economy, analysts said.
China has just announced a 4-trillion-yuan stimulus package to offset adverse global economic conditions.
Elsewhere, China Eastern Airlines Corp, the nation's third-largest carrier by fleet size, said it is taking about a 10th of its fleet out of service as the global economic slowdown crimps travel in the world's most populous nation. The stock rose 2.64 percent to 3.11 yuan.
Haitong Securities Co, the country's largest listed brokerage by market value, lost 3.55 percent to 13.30 yuan. The company said yesterday that it received approval to sell as many as 6 billion units of asset management products to expand its income sources.
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