Money

Equities gain ground, led by automakers

By Zhang Shidong (China Daily)
Updated: 2010-09-04 09:32

SHANGHAI - Mainland stocks rose as automakers gained on prospects sales will pick up, countering declines by developers on concern that the government will impose more measures to curb property speculation.

SAIC Motor Corp, the nation's biggest carmaker, rose to an eight-month high. China Dongfanghong Spacesat Co climbed 5 percent, leading gains among satellite navigation stocks, after the Shanghai Securities News reported the government will boost industry spending as part of the next five-year plan.

China Vanke Co and Poly Real Estate Group Co dropped at least 0.5 percent after BNP Paribas said home prices will decline from this month and StarRock Investment Management said the real-estate market has a "very big bubble."

"Global and Chinese economies aren't at a big risk of a double-dip," said Wang Zheng, chief investment officer at Jingxi Investment Management Co in Shanghai. "The economic situation has ruled out the possibility of systemic declines facing the stock market."

Almost five stocks rose for every four that fell on the Shanghai Composite Index, which slipped 0.38, or less than 0.1 percent, to 2655.39 on Friday.

The gauge added 1.7 percent this week, the most since five days through July 30, after domestic manufacturing growth picked up last month and the Federal Reserve pledged to safeguard the recovery. The CSI 300 Index lost 1.19 to 2920.21 on Friday.

Related readings:  Automakers, commodity firms lead rally in mainland equities  Equities decline amid concern over property tightening  Consumer firms lead recovery in equities  Equities set to gain from low interest rates

China plans to include the development of the satellite navigation industry in the nation's next five-year plan, the Shanghai Securities News reported on Friday, without saying where it got the information. The industry will likely grow more than 50 percent a year to a market of more than 400 billion yuan ($58.8 billion) by 2020, it said.

The government is trying to bolster the development of new industries, such as alternative energy and biopharmaceuticals, to offset the slowdown in growth. China's economic growth slowed to 10.3 percent in the second quarter from 11.9 percent in the first three months of this year.

Hang Seng soars

Hong Kong stocks rose, led by developers, as Sino Land Co reported better-than-expected earnings and after home sales in the city jumped to the highest in almost three years.

The Hang Seng Index rose 0.5 percent to close at 20971.50 on Friday, extending its gains this week to 1.8 percent. That's the measure's first weekly gain in four. Twenty-five stocks increased and 11 fell on the 43-member gauge.

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