Markets

Stocks in mainland hit high Thursday

By Zhang Shidong (China Daily)
Updated: 2010-11-05 09:19

SHANGHAI - Mainland stocks rose to the highest in almost seven months, led by raw-material companies, after the US Federal Reserve Board said it will buy an extra $600 billion of Treasuries to bolster economic growth.

Coal producer China Shenhua Energy Co and Zhongjin Gold Corp led gains for metal and energy companies. Retailer Shanghai Friendship Group Inc jumped by the 10 percent daily limit after agreeing to acquire an affiliate.

The Shanghai Composite Index gained 1.9 percent to 3,086.94 at the 3 pm close on Thursday, the highest since April 16. The CSI 300 Index rose 1.8 percent to 3,480.50 on Thursday. The Shanghai gauge has rebounded 31 percent since reaching this year's low on July 5 on expectations that central banks around the world will inject more cash into their economies to boost growth.

A measure of energy stocks jumped 2.8 percent on Thursday, the third-most among the 10 industry groups of the CSI 300. It slid 3 percent on Wednesday.

Zhongjin Gold, the country's second-largest bullion producer by market value, advanced 2.1 percent on Thursday.

Bears on mainland equities are in retreat even as bets against the country's companies exceed those of any of the world's biggest markets, a buy signal for some of the nation's most accurate stock forecasters.

Morgan Stanley and China International Capital Corp strategists who predicted the rally say it will continue through the year-end and may lead more investors to buy back stocks.

A gauge of technology stocks rose 5.1 percent for the steepest gain in the CSI 300. Tsinghua Tongfang, a computer company, surged 9.1 percent on Thursday, the highest since March 2008.

Hang Seng gains

Hong Kong stocks rose, extending the benchmark index's gain to its highest level in more than two years.

The Hang Seng Index climbed 1.62 percent to 24,535.63 on Thursday. The Hang Seng China Enterprises Index of H shares of mainland companies advanced 0.92 percent to 13,948.49 on Thursday.

Bloomberg News