Mainland equities rise for 4th day as carmakers climb
Updated: 2013-05-30 07:13
By Bloomberg in Shanghai (China Daily)
Investors at a securities brokerage in Fuyang, Anhui province. The Shanghai Composite Index rose to 2,234.02 on Wednesday. Lu Qijian / for China Daily
China's stocks rose for a fourth day, led by consumer-discretionary companies, as improving US consumer confidence and home-price data boosted the outlook for exports to the world's biggest economy.
SAIC Motor Corp, which has a joint venture with General Motors Co, led gains for carmakers after Daiwa Securities Co said auto inventories showed healthy industry demand.
FAW CAR Co jumped to a two-year high before its parent company starts sales of Red Flag sedans.
Poly Real Estate Group Co rose 1.3 percent. Zoomlion Heavy Industry Science & Technology Co slid to a three-year low even after it denied falsifying sales.
The Shanghai Composite Index rose 0.1 percent to 2,234.02 at the close. The CSI 300 Index retreated 0.1 percent to 2,642.56. The Hang Seng China Enterprises Index slid 1.5 percent.
"Investors think the US economy may improve in the second half and this could boost our exports," said Zhang Haidong, an analyst at Tebon Securities Co. "Investors are rotating their investment into blue chips."
The US Conference Board's index of consumer sentiment climbed to its strongest level in more than five years, while the S&P/Case-Shiller index of property values in 20 cities jumped 10.9 percent in the 12 months through March, the most since April 2006. The US is China's second-largest export market, making up about 17 percent of the nation's overseas shipments, according to Shenyin & Wanguo Securities Co.
The Shanghai index has rebounded 6.9 percent from this year's low set on May 2 after interest-rate cuts by central banks around the world spurred capital inflows and Chinese policymakers accelerated reforms of the economy by allowing private investment in industries such as telecommunications.
SAIC, the biggest Chinese automaker, jumped 2.1 percent to 15.90 yuan ($2.59). Great Wall Motor Co added 1.4 percent to 38.20 yuan. China's April auto inventory of 1.68 months announced by the China Automobile Dealers Association shows the demand and supply relationship is healthy, Jeff Chung, a Daiwa analyst, wrote in a report.
FAW rallied 7.7 percent to 15.46 yuan, the highest close since April 26, 2011. China FAW Group Corp will hold an event on Thursday evening to mark the start of retail sales, according to Fan Xiaojing, a marketing executive with the automaker.
Poly Real, the second-biggest Chinese developer, advanced 1.3 percent to 12.80 yuan, the highest close since Feb 28. The Shanghai property gauge trades at 8.1 times estimated profit, compared with a five-year average of 14.28.
(China Daily USA 05/30/2013 page16)