China’s stocks rise to 2-month high as consumer, property stocks advance(2)
Smallcaps Advance
The ChiNext index of start-up companies advanced 0.8 percent to a one-month high in Shenzhen. Ledman Optoelectronic, a producer of light-emitting diode products, gained 3.4 percent to 16.36 yuan. Qingdao Eastsoft Communication Technology Co. (300183) climbed 2.7 percent to 56.09 yuan.
The seven-day repurchase rate, a gauge of funding availability in the financial system, fell 4.7 basis points to 3.67 percent at 3:08 p.m. in Shanghai for its first decline in four days, according to a weighted average compiled by the National Interbank Funding Center. A trader said the central bank will skip bill sales today.
A gauge of property stocks in the Shanghai Composite rallied for a second day, gaining 1 percent, after the government pledged to support first-time homebuyers and said it will increase support for building of affordable housing.
Property Stocks
Vanke, the biggest developer, added 1.5 percent to 7.70 yuan. Poly Real Estate Group Co., the second largest, rose 1.3 percent to 10.56 yuan. Anhui Conch Cement Co., the biggest cement producer, advanced 1.5 percent to 17.40 yuan. The company’s Hong Kong-traded stock was also raised to “hold” at Deutsche Bank AG.
“Policy makers are now beginning the process of selectively easing up property tightening measures,” Jason Todd, global head of equity strategy at Religare Capital Markets Ltd., said in a report. “This primarily relates to mortgage lending and first time home buyer support. For now, we do not expect policy change at a national level.”
Government investment in low-income housing will rise by 20 billion yuan this year, 21st Century Business Herald reported, citing unidentified local officials. The central government budgeted 400 billion yuan in investment this year, it said.
Greek Finance Minister Evangelos Venizelos told reporters in Athens there were still “issues outstanding that must be resolved” before European finance ministers meet in Brussels today. He spoke after a meeting with Prime Minister Lucas Papademos and the so-called troika of lenders that ended just before 6 a.m. local time.
Greek Pension Cut
The meeting with lenders, representing the European Commission, the European Central Bank and the International Monetary Fund, took place after leaders of the three parties supporting the government met Papademos and failed to resolve a dispute over pension cuts.
Jiangxi Copper, China’s biggest producer of the metal, lost 2 percent to 26.74 yuan. Aluminum Corp. of China Ltd., the listed unit of nation’s biggest maker of the lightweight metal, fell 0.7 percent to 7.19 yuan.
“The twist on the European debt crisis will have a negative impact on investors’ appetite for risk assets,” said Wang Weijun, a strategist at Zheshang Securities Co. in Shanghai.
