Domestic stocks rose this morning thanks to a broad rally across the board after a newspaper report said the government "won't massively sell shares" to cool equity markets.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, jumped 2.37 percent, or 114.54 points, to 4,950.71 at 11:30am today.
Gainers in the Shanghai market outnumbered losers 730 to 38 while 78 were unchanged.
The Shenzhen Composite Index, which covers the smaller mainland stock market, gained 2.10 percent, or 27.45 points, to 1,337.42.
The stocks' strong performance this morning came after Shanghai Securities News reported that the government "won't massively sell shares" to cool equity markets.
Companies owned by the central government are committed to providing shareholders with sustained returns, strengthening business and enhancing the economic influence of the state-owned sector, the Shanghai Securities News said, citing the State-owned Assets Supervision and Administration Commission's director Li Rongrong.
State-owned companies aren't supposed trade shares or seek to profit from price differences in the stock market, according to the newspaper report.
Industrial & Commercial Bank of China Ltd, the nation's biggest listed lender, added 2.60 percent, or 0.20 yuan (3 US cents), to 7.90 yuan while China Minsheng Banking Corp, the nation's only listed privately controlled lender, increased 1.40 percent, or 0.20 yuan, to 14.48 yuan.
Minsheng Banking said it's reorganizing its operations to become more customer-oriented and efficient as competition in the industry intensifies. The lender will split corporate banking into five units specializing in real estate, energy, transportation, metallurgy and institutions, the Beijing-based company said in a statement today.
China Petroleum, Asia's biggest oil refiner, also known as Sinopec, advanced 3.67 percent, or 0.77 yuan, to 21.76 yuan. PetroChina, the nation's biggest oil company, also boosted 1.92 percent, or 0.56 yuan, to finish the session at 29.80 yuan.
China Life Insurance Co, the nation's biggest insurer, was up 3.71 percent, or 2.04 yuan, to 57 yuan. The company said it received 183.8 billion yuan in premiums in the first 11 months of this year, without providing any year-earlier figures.
(Shanghai Daily December 19, 2007)
