Chinese shares hit new 13-month high

(Xinhua)
Updated: 2009-07-23 20:22

BEIJING: Chinese equities closed higher on Thursday to a new 13-month high, led by financial and property shares.

The benchmark Shanghai Composite Index closed at 3,328.49 points, up 31.88 points, or 0.97 percent. The Shenzhen Component Index closed at 13,521.65 points, up 168.44 points, or 1.26 percent.

Combined turnover shrank to 298.69 billion yuan (US$43.73 billion) from 306.79 billion yuan on the previous trading day.

Gainers outnumbered losers by 565 to 280 in Shanghai and 473 to 260 in Shenzhen.

Real estate shares led the rise by climbing 2.82 percent after a moderate correction of previous trading days on Thursday.

China Vanke Co., Ltd, the country's largest property developer by market value, rose 3.07 percent to 14.42 yuan. Poly Real Estate, China's second largest, moved up by 4.27 percent to 30.33 yuan.

Wolong Real Estate Group, Gemdale Co. Ltd, Zhongjiang Real Estate Co.,Ltd, and Guoxinrongda Real Estate rose by the daily limit of 10 percent to 11.89 yuan, 19.51 yuan, 9.33 yuan and 12.6 yuan, respectively.

The upward trend showed that the investors' focus was still on the sector despite government warning on home price rises, said Huang Xiangbin, analyst with Cinda Securities.

China's banking regulator urged banks Sunday to stick to rules on mortgages for second-home buyers and step up scrutiny over approvals. Down-payments on second homes are set at a minimum 40 percent.

Rigid demand on housing and inflation expectation would continue to pull up the performance of real estate companies, he said.

Banks also pulled up the index. Bank of Communications, China's fifth largest lender, surged 5.16 percent to 10.6 yuan, while China Minsheng Banking Corp., the country's first private bank, rose 4.64 percent to 8.79 yuan.