BIZCHINA / Top Biz News |
Mainland stocks gain on mutual-fund boom(Shanghai Daily)Updated: 2007-03-15 16:02 Chinese mainland's stocks rebounded from the biggest drop in two weeks on speculation the expansion of the country's mutual-fund industry will boost shares prices. China Vanke Co. gained and Shanghai Pudong Development Bank Co. gained. "There are pools of money that are going to enter the market,'' said Yan Ji, an investment manager in Shanghai at HSBC Jintrust Fund Management Co., which oversees about US$517 million. "It will keep up the rally and push shares further up.'' Ping An Insurance (Group) Co., China's second-biggest insurer, gained after the company said 2006 profit increased more than 50 percent from a year earlier, Bloomberg reported. The Shanghai and Shenzhen Composite Index, which tracks yuan-denominated A shares listed on Chinese mainland's two exchanges, climbed 30.55, or 1.2 percent, to 2627.91 as of 11:30am local-time break. The index slid 1.6 percent yesterday, the most since March 1. China's assets under management in the fund industry may top US$1.4 trillion by 2016, making it the world's fastest-growing market, McKinsey & Co Inc. said in a report. The nation's US$156 billion of managed assets will swell an average 25 percent a year over the coming decade, the New York-based consulting company said. Vanke, the nation's biggest property developer, rose 1.10 yuan, or 7.3 percent, to 16.15 yuan. Shanghai Pudong Development Bank, Citigroup Inc.'s Chinese partner, advanced 0.39 yuan, or 1.7 percent, to 23.30 yuan. Wuhan Iron & Steel Co., third-biggest domestic steelmaker, climbed 0.28 yuan, or 3.4 percent, to 8.46 yuan. China's fund management companies are expected to raise more than 70 billion yuan (US$9.04 billion) selling new fund units in March, the most for a single month, the China Securities Journal said yesterday. (For more biz stories, please visit Industry Updates) |
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