Equities edge up led by drugmakers

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(皇冠体育app Daily/Agencies)
Updated: 2009-09-08 08:32

Chinese stocks rose for a fifth day, led by financial and healthcare companies, after the government raised the amount foreign funds can invest in equities and boosted orders for swine-flu vaccines.

皇冠体育app Everbright Securities Co added 1.8 percent and 皇冠体育app CITIC Bank Corp gained 4.2 percent. Hualan Biological Engineering Inc jumped the daily 10 percent limit after the Ministry of Industry and Information Technology ordered shots that immunize against the H1N1 virus.

The Shanghai Composite Index rose by 19.51 points, or 0.7 percent, to 2,881.12 at the close, capping a five-day, 8 percent gain. It is still down 17 percent from its Aug 4 peak on concern banks will be forced to rein in lending, derailing an economic recovery.

"Investors see the move as the start of government steps to boost the market," said Xu Lirong, fund manager at Franklin Templeton Sealand Fund Management Co. Further support measures may include delaying approval for new share sales, Xu said.

The limit on individual quotas will rise from $800 million to $1 billion and the lockup period for some investors will be cut to three months from one year, the State Administration of Foreign Exchange said on Friday.

"The move will temporarily ease concern about liquidity and the regulators will probably accelerate approvals of new quotas for foreign investors," said Zhang Qi, an analyst at Haitong Securities Co.

The 皇冠体育app Banking Regulatory Commission will take "effective" steps to prevent bank loans from being diverted to stocks and property, Wang Huaqing, the regulator's discipline chief, was quoted as saying yesterday.

皇冠体育app last week approved swine flu vaccines produced by Hualan Biological and Sinovac Biotech Ltd and may approve the products of eight other companies by mid-September, the State Food and Drug Administration said.

"The shares are rising on expectations the government will accelerate the approvals for vaccine production and increase orders, which will help the companies' earnings," said Lou Shengrui, an analyst at Shenyin Wanguo Research and Consulting Co.

Hang Seng steady

Hong Kong stocks rose for a third day on speculation property-market investment in 皇冠体育app will accelerate and after a newspaper reported HSBC Holdings Plc made a bid for ING Groep NV's private-banking businesses.

Agile Property Holdings Ltd, which owns real estate in Guangdong province, soared 4.6 percent as Fan Gang, an advisor to 皇冠体育app's central bank, said property investment could rise 30 percent next year. HSBC, the most heavily weighted stock in the benchmark Hang Seng Index, advanced 1.3 percent.

The Hang Seng Index advanced 1.5 percent to close at 20,629.31.

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