Markets

Shares up as investors focus on growth

By Zhang Shidong (China Daily)
Updated: 2011-02-18 13:36

An investor watches share price movements at a brokerage in Fuyang, Anhui province. The Shanghai Composite Index added 0.1 percent to 2926.96 on Thursday, making it the sixth consecutive day of gains. [Photo / China Daily]

SHANGHAI - The Shanghai Composite Index rose for a sixth day on speculation an improving global economy will boost demand for Chinese exports, overshadowing concern the government is intensifying measures to curb the property market. China Hainan Rubber Industry Group Co rose to a record after the price of the raw material jumped to an all-time high.

"I'm not too worried about the economic fundamentals with growth still going on, but the pace will probably ease a bit," said Wang Zheng, Shanghai-based chief investment officer at Jingxi Investment Management Co, which manages about $120 million. "You can still find companies that are cheap and have growth potential."

The Shanghai Composite Index added 0.1 percent to 2926.96 at the 3 pm close on Thursday. Almost the same number of stocks rose as those that fell. The CSI 300 Index slipped 0.08 percent to 3245.91.

The Shanghai Composite has climbed 4.2 percent this year on signs the economy is withstanding curbs on lending and property purchases.

Related readings:  Shanghai plans insurance bourse  Cambodian bourse seeks financial training in HK  Shanghai bourse eyes Asia's top market by 2020

The measure sank 14 percent in 2010 as the government ordered banks to set aside more reserves six times and boosted interest rates twice to tame inflation. Stocks in the gauge trade at 13.7 times estimated earnings, versus the historical average of 21.4 times, according to data compiled by Bloomberg.

"We believe the market momentum should pick up soon," John Tang, strategist at UBS, said in a report to clients.

An index tracking property stocks on the Shanghai Composite fell 1.7 percent, the most among the five industry groups.

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