Thanks to the increase in financial and consumer shares, China’s stocks have now risen to the highest figure in a week. Both Northeast Securities and Qingdao Haier reported higher profit than expectations; apart from that, a Government report suggested that growth will rebound in 2013.
The benchmark gauge Shanghai composite Index went ahead by 0.7% and it is currently at 2,212.43. The gauge is heading towards its highest close since 11th April and on this week; it has gained around 0.8%. On the other hand, the CSI 300 increased by 1% on today and is currently valued at 2,490.56. The Hang Seng China Enterprises Index has also advanced by 1%.
According to the Analyst of Haitong Securities Co, Zhang Qi, it is expected that most of the listed companies will achieve the profit growth during the first quarter of this year and hence, it will support the Chinese economy as well. Zhang added that the slowdown in Chinese economy and also the expectations of tightening liquidity have already quite priced into the Chinese stocks.
The Head of the Economic Forecast Department of Chinese State Information Center, Zhu Baoliang, stated that the economy of the Asian powerhouse is expected to rebound in the next 2 quarters of the current year. This news helped the Chinese stocks in extending the gains on today. While announcing this analysis, Zhu added further that the country should be stabilizing money supply growth and further loosen the fiscal policy in an attempt to boost the economic growth of this country. Incidentally, Chinese State Information Center is a research institute under the National Development and Reform Commission, which is the top economic planer of China.
When it comes to the Yuan forwards, the same were within 0.1% of the record high figures and these are now set for posting a weekly gain for the 4th straight time. The Central Bank of China has already announced that the trading band of the country will soon be widened and this decision is definitely helping the Yuan forwards big time. This news helped the Hong Kong stocks as well.
Among companies, the biggest refrigerator maker in China, Qingdao Haier, increased by 2.3%. On the other hand, Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co., which is the largest producer of Steel in China, paved the way for a rebound in the material stocks.