NEWS

Stocks gain 1.6% on first trading day

5 Jan 2011

2011-January-5 08:53 | Shenzhen Daily

CHINA stocks rose on the first trading day of the year on speculation inflation eased last month and that the government will not impose further curbs on the property market.

Improving global sentiment and economic figures boosted the appetite for risk assets, said Wang Zheng, Shanghai-based chief investment officer at Jingxi Investment Management.

The Shanghai Composite Index climbed for a fourth session, adding 44.57, or 1.6 percent, to 2,852.65 at the close.

Coal miners and metals were leading gainers on mainland bourses, with Jizhong Energy Resources up 6.1 percent and Guizhou Panjiang Refined Coal soaring 9.4 percent, while Yunnan Copper added 4 percent.

Property developers also jumped as investors snapped up shares at cheap valuations after they suffered heavy losses recently.

Gemdale Corp. soared by the day’s 10 percent limit and Poly Real Estate Group Co. climbed 9.9 percent in Shanghai, with China Vanke rising 7.1 percent in Shenzhen and China Overseas Land & Investment Ltd. adding 3.7 percent in Hong Kong.(SD-Agencies)