Top Biz News

Shanghai Composite Index closes at 3,014.44 points

(chinadaily.com.cn)
Updated: 2007-03-19 15:06

China Life and Ping An each paid 5.4 billion yuan for 600 million shares, Minsheng Bank said in a statement today. The Beijing-based lender raised 18.16 billion yuan selling 2 billion shares to seven corporate investors. China Life climbed 1.48 yuan, or 4.38 percent, to 35.29 yuan and Ping An is suspended from trading.

Graphical chart of the Component Index on the Shenzhen Stock Exchange. [stockstar.com]

Other lenders also rose on the news. Industrial & Commercial Bank of China Ltd, the nation's biggest listed lender, advanced 0.23 yuan, or 4.65 percent, to 5.18 yuan. China Merchants Bank Co, the nation's third-biggest publicly traded lender, gained 0.84 yuan, or 5.41 percent, to 16.36 yuan.

Some companies including property developers dropped on concern the central bank's move to raise the lending rate will dent earnings, because of higher borrowing costs.

China on March 17 announced it would raise interest rates for the third time in 11 months to curb inflation and reduce asset bubbles. The one-year benchmark lending rate was raised to 6.39 percent, its highest in almost eight years, from 6.12 percent, according to the People's Bank of China.

The one-year deposit rate was increased to 2.79 percent from 2.52 percent. Both increases were effective yesterday.