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Stocks up for sixth straight trading day

(China Daily/Agencies)
Updated: 2009-05-08 07:57

China's stocks advanced for a sixth day, the benchmark index's longest winning streak in six weeks, as a central bank pledge to maintain liquidity.

"The situation of ample liquidity won't change in the coming two or three quarters," said Larry Wan, Shanghai-based deputy chief investment officer at KBC-Goldstate Fund Management Co. "Corporate earnings are likely to improve to catch up with stock price gains."

China will give 20 billion yuan this year in interest rate subsidies on bank loans to help industries including steel, petrochemical and automobile companies upgrade their technology, the State Council said.

The central bank will ensure an "ample" supply of money, it said in a quarterly monetary policy report on Wednesday.

"From the central bank report, we are quite sure the current loose monetary policy won't be changed," said Xiao Yanming, a strategist at Guolian Securities Co in Shanghai. "Ample liquidity will be very positive for both equities and the economy."

The Shanghai Composite Index added 4.93, or 0.2 percent, to 2,597.45 at the close after changing direction at least eight times. The six-day gain is the longest since the seven days ended March 24. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, added 0.1 percent to 2,767.08.

The Shanghai Composite has jumped 43 percent this year, the fourth-best performer among 90 global gauges.