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Economy

Chinese shares close mixed on Monday

(Xinhua)
Updated: 2010-01-11 19:40

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BEIJING: Chinese equities closed mixed on Monday with the key Shanghai index edging up 0.52 percent, led by shipping companies and brokerage firms boosted by improved exports figures and the government's approval of stock index futures.

The benchmark Shanghai Composite Index gained 3.3 percent at the opening and then went lower to close at 3,212.75 points, up only 0.52 percent, or 16.75 points.

The Shenzhen Component Index declined 0.8 percent, or 106.35 points, to close at 13,161.09 points.

Combined turnover totaled 280.69 billion yuan (US$ 41.1 billion), up from 204.86 billion yuan the previous trading day.

Gainers outnumbered losers by 464 to 402 in Shanghai and 489 to 328 in Shenzhen.

The index rose after an unexpected announcement that the government had approved the long-awaited launch of stock index futures and a trial run of margin trading, which triggered profit taking and led to the downward movement, said Yu Junwei, analyst with the Shanghai Shiji Investment Consultant Company.

The China Securities Regulatory Commission announced Friday that the State Council, the Cabinet, had approved "in principle" the launch of index futures and given it the green light to pilot the margin trading.

Brokerage companies advanced on new business boosted by the news. CITIC Securities went up 3.6 percent to 33.42 yuan. Northeast Securities climbed 1.35 percent to 38.19 yuan.

Shipping companies also rose, boosted by December exports statistics, which increased for the first time in 14 months compared with the corresponding period the previous year.

China COSCO Holdings Company Ltd. rose 3.45 percent to 14.09 yuan. The COSCO Shipping Co. gained 3.25 percent to 10.81 yuan.

Shares of real estate developers, however, dropped after the government said Sunday it would strengthen property project loan risk management and market supervision.

China Vanke Co., the country's largest property developer by market value, shed 1.6 percent to 10.18 yuan. Poly Real Estate Group Co., the country's second largest developer, lost 2.28 percent to 21 yuan.

Shares of Tibet-based enterprises gained, boosted by the decision of a meeting presided over by President Hu Jintao Friday that the government would ramp up support measures for the development of the region in the areas of the economy, human resources and technology.

Tibet Galaxy Science & Technology Development Co., Ltd. rose by the daily 10-percent limit to 10.96 yuan. Tibet Tourism Co. also grew by the 10-percent daily limit to 11.97 yuan. Shares of Tibet Mineral Development surged 8.66 percent to 24.98 yuan.