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Chinese shares up 3.97% as regulator denies IPO rumour

(Xinhua)
Updated: 2009-02-06 16:04

Chinese shares went up 3.97 percent on Friday as the China Securities Regulatory Commission denied the market talk that initial public offerings (IPO) will be re-launched.

The Shanghai Composite Index rose 83.22 points, or 3.97 percent, to close at 2,181.24, while the Shenzhen Component Index gained 358.48 points, or 4.84 percent, to finish at 7,771.90.

The market talk that China will allow companies to raise money from the market through new IPO has sparked sell-off in the the previous trading day.

Combined turnover was 189.6 billion yuan ($27.9 billion), roughly the same as that on Thursday.

The non-ferrous metal industry, real estate, automobiles, information technology and new energy shares saw the highest rises.

Changfeng Motors rose 9.98 percent to 6.61 yuan and auto firm Weifu High Technology surged by the daily limit of 10 percent to 7.26 yuan on news that the government plans to help the auto sector expand rural markets from next month.

Information technology companies gained on the news that the government is to announce new measures to boost this sector.

Beijing Aerospace Changfeng rose 9.92 percent to 5.54 yuan, while Shenzhen Coship Electronics added 9.28 percent to 9.66 yuan.

Medical company Tianjin Tasly Pharmaceutical saw its shares gain 1.04 percent to close at 13.6 yuan. On Thursday, the price dropped 2.68 percent as Chinese Academy of Engineering academician Li Lianda said one of the company's heart disease medicines contained toxic ingredients.