Go to Google NewsChina shares rebound on industrial stimulus hope
Go to Google NewsChina shares rebound on industrial stimulus hope
SHANGHAI (AP) — Chinese shares rebounded Friday on hopes Beijing will soon release stimulus plans for more industries after auto and steel producers.
The benchmark Shanghai Composite Index rose 1.8 percent, or 34.23 points, to close at 1954.44. The Shenzhen Composite Index for China's smaller second exchange rose 0.8 percent to 600.69.
The state-run Shanghai Securities Journal said Friday that Beijing is weighing measures to help petrochemical and equipment-manufacturing industries, adding to a stimulus plan unveiled in November and recent aid to auto and steel producers.
"Buying sentiment is strong, driven by active individual stocks that have been taking turns to rise on the government stimulus package since November," said Zhou Lin, analyst for Huatai Securities in the eastern city of Nanjing.
"Yet short-term trading is the still the trend," he said.
Investors are looking ahead to new data due out next week to see whether the government efforts are moderating China's economic slowdown.
Financials rose after Lou Jiwei, chief executive of China Investment Corp., a unit of China's sovereign wealth fund, said the fund has been increasing its stakes in three state-owned banks.
Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, increased 2 percent to 3.56 yuan. Bank of China Ltd. rose 1.7 percent to 3 yuan, while China Construction Bank, Ltd. jumped 4.1 percent to 3.85 yuan.
Equipment manufacturer China North Optical-Electrical Technology rose 8.2 percent to 24.11 yuan; Shanghai Zhenhua Port Machinery added 2.6 percent to 9.01 yuan, while China State Shipbuilding rose 4.5 percent to 44.71 yuan.
Wine makers surged on hope of the coming Chinese New Year holidays starting on Jan. 26, would boost liquor consumption. Sichuan Swellfun Co. soared 10 percent to 12.87 yuan.
In currency markets, China's yuan weakened to 6.8370 to the U.S. dollar, down from Thursday's close of 6.83541.