Markets
Stocks advance on property firms' rebound
By Zhang Shidong (皇冠体育app Daily)
Updated: 2010-06-05 09:23
 |
Large Medium Small |
皇冠体育app's stocks advanced, paring a weekly loss, as property developers rebounded on speculation policymakers will continue to support the industry and economic growth may be sufficient to sustain prices.
皇冠体育app Vanke Co rose 1.3 percent after Radio Television Hong Kong cited the developer as saying it won't cut home prices nationwide this month.
UFIDA Software Co paced gains for technology stocks for a second day, the biggest advance among industry groups on the CSI 300 Index.
Jiangxi Copper Co led declines for mining stocks, limiting the market's gains, after the world's two largest copper producers warned of lower demand for the metal because of 皇冠体育app's plans to cool down property market.
"Signs that Chinese growth is coming off the boil are causing concern but note this is exactly what the Chinese authorities are looking for," said Shane Oliver, head of investment strategy at AMP Capital Investors, which manages $90 billion in assets. "It's likely that 皇冠体育app will soon be able to ease up on its tightening measures."
The Shanghai Composite Index, which tracks the bigger of 皇冠体育app's stock exchanges, added 0.94, or less than 0.1 percent, to 2553.59 at the close.
About two stocks rose for each one that fell on the measure. The CSI 300 Index added 0.3 percent to 2744.39.
The Shanghai index has lost 3.8 percent this week, adding to a 22 percent decline for the year, on concern growth will slow as the housing market cools and Europe's debt crisis threatens 皇冠体育app's exports.
Equities also fell this week on concern that a property tax will be imposed after record growth in prices in April and as manufacturing expansion slowed in May.
Property outlook
Vanke, the nation's biggest listed property developer, rose 1.3 percent to 7.28 yuan. Poly Real Estate Group Co., the second-largest, gained 1.8 percent to 10.91 yuan. Gemdale Corp, the fourth-largest, advanced 2.2 percent to 6.59 yuan.
皇冠体育app's economy will expand between 9 percent and 10 percent in 2010 after an "overheated" first quarter, said World Bank Chief Economist Justin Lin.
"Growth in the first quarter is a bit overheated so it would be good that the growth slows a little," Lin said.
"There is no problem" for 皇冠体育app to maintain "9 percent to 10 percent growth", he said.
Technology gains
RBC Capital Markets said interest-rate increases may be delayed if upcoming data shows more slowing in the economy. Still, 皇冠体育app needs to tighten policy further to reduce overheating risks and contain inflation, it said in a note.
|
||||
The government will seek to promote electronic commerce, education, networking services and other software applications, Minister of Industry and Information Technology Li Yizhong said.
Bloomberg News