Shares close at five-year high
By Zhang Ran (China Daily)
Updated: 2006-10-10 08:53
Investors buy stocks at an
exchange in Nanjing, capital of East China's Jiangsu Province. [China
Daily]
| "The bank's comparatively low
price/earnings ratio, which is currently around 14 times, provides major
investment opportunities," said She Minhua, a banking analyst at CITIC China
Securities.
Shenzhen Development Bank yesterday jumped 6.50 per cent to close at 8.69
yuan (US$1.1) as its new share reform plan helped the bank gain more popularity.
Shares in Huaxia Bank increased 6.68 per cent to close at 4.63 yuan (58.6 US
cents) and China Merchants Bank jumped 4.53 per cent to 10.39 yuan (US$1.32).
She Minhua said investors had great confidence in the country's commercial
banks and were willing to make long-term investments in the sector.
The Industrial and Commercial Bank of China (ICBC) set a lower-than-expected
price range for its dual shares sale in Hong Kong and Shanghai yesterday, but
the analyst said that this did not make any major contribution towards
yesterday's rise in Chinese banking shares. Other sectors such as the medical
equipment and medicine industry also witnessed encouraging increases yesterday.
Zhou Feng, an analyst at Shanghai-based Shenyin Wanguo Securities predicted
that stocks would continue to rise this week, but the market may come under
pressure in the longer term from the ICBC's initial public offering and
Sinopec's resumption of trading today after its State share reform.
The DPRK's nuclear test has meanwhile led to a slump in markets across the
Asia-Pacific region.
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