Making a Splash: Milk producer Bright Dairy jumped 10% today
CHINA SHARES got off to a flying start this week, closing up 2.11% with the benchmark Shanghai Composite finishing at 2,475.42, within sight of the psychologically significant 2,500 level.

Shares were boosted in part by a lower-than-expected June CPI figure.

Shares in Hong Kong did not share the enthusiasm of the mainland, with the Hang Seng Index skidding 0.79% today to 20,090.95.

Riding the crest of the buying wave today were five A-share listed firms, all halted from trade after rising by the daily 10% limit.

They were Shanghai-based Bright Dairy & Food Co Ltd (SHA:600597), Nanjing Textiles (SHA: 600250), sporting equipment maker HL Corp (SZA: 002105), optical tech and telecom firm Wuhan East Lake High Tech (SHA: 600133) and agriculture enterprise Zhengbang Tech (SZA: 002157).

A-share lender Closing price (yuan) Monday rise
Pudong Development 14.53 +2.69%
China Merchants 14.01 +2.64%
Bocom 6.21 +2.48%
ICBC 4.19 +0.96%
CCB 4.77 +0.85%

Analysts said the fact that these five biggest daily gainers were from disparate industries shows that sector-specific fundamentals were not at play today and investors were simply in a buying mood after a long string of mainly losing sessions.

Almost all counters began steadily rising in the afternoon session, with standouts more common in the resources, property, financial and steel sectors.

The buying sentiment today was spurred on by continuous selloffs over the past few weeks that left potential standout bargains after the dust had settled.

But analysts said a more immediate reason for the sudden bullishness today was further indication that economic regulators were in no hurry to expand restrictions on credit availability nor were they in any mood to make good on recent suggestions that new rules to prevent property speculation were to be implemented in the near term.

The Shanghai Composite is showing signs of life again

"Expectations of perhaps even less stringent macroeconomic controls going forward gave a big boost to sentiment today. Economic figures for June just out make the likelihood of even tighter credit in the third quarter quite remote,” said a Chinese language piece in SinaFinance.

It added that a lower-than-expected CPI for June, the chief barometer of inflation, cheered investors today who had previously been waiting on the sidelines looking for direction on credit availability going forward, and any imminent interest rate hike is now unlikely.

China's CPI rose 2.9% last month from a year earlier, slower than May's 3.1% rise. The rise in the producer price index (PPI) also slowed, up 6.4% in June versus May's 7.1% rise.

hat the Central Bank would not likely be tightening credit in the country anytime soon also gave a boost to mainland banks today.

See earlier: CHINA SHARES: Which direction after 30% 1H fall?

Share Prices

Counter NameLastChange
AEM Holdings4.0000.040
Avi-Tech Electronics0.275-0.005
Broadway Ind0.141-
China Sunsine0.4500.010
Food Empire0.500-0.005
Fortress Minerals0.3500.010
Geo Energy Res0.3650.010
Golden Energy0.7950.045
GSS Energy0.050-
ISDN Holdings0.430-
IX Biopharma0.131-0.001
Jiutian Chemical0.0770.001
KSH Holdings0.335-
Leader Env0.050-
Medtecs Intl0.109-0.001
Meta Health0.0300.003
Moya Asia0.0890.001
Nordic Group0.490-
Oxley Holdings0.159-0.001
REX International0.225-
Sinostar PEC0.180-
Southern Alliance Mining0.630-
Straco Corp.0.410-
Sunpower Group0.260-
The Trendlines0.083-
Totm Technologies0.1230.001
UG Healthcare0.168-0.001
Uni-Asia Group0.860-0.030
Wilmar Intl3.840-0.020
Yangzijiang Shipbldg1.0300.010

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