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Market winning streak longest in 19 months

(China Daily)
Updated: 2009-03-25 07:53

China's stocks rose, driving the benchmark index to its longest winning streak in 19 months, led by banks after the government urged more lending to revive growth in the world's third-largest economy.

Bank of China Ltd added 0.9 percent and China Minsheng Banking Corp advanced 1.9 percent after the central bank pushed more lending to farmers and small businesses. PetroChina Co, the nation's biggest oil company, added 0.9 percent after crude oil climbed to the highest in four months.

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"The central bank is firmly adopting the government's directive of using the loosening of monetary policy to stimulate the economy," said Zhao Zifeng, a fund manager at China International Fund Management Co in Shanghai. "With so much money pumped in, we'll see a positive impact on the economy."

The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, gained for a seventh day, rising 12.94, or 0.6 percent, to 2,338.42 at the close. It's the longest winning stretch since Aug 28, 2007. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, added 0.5 percent to 2,451.78.

The Shanghai Composite Index has risen 28 percent this year, the best performer among 89 benchmark measures tracked worldwide by Bloomberg.

Stocks have rallied on optimism the government's 4-trillion-yuan stimulus plan will reverse a slump in the world's third-largest economy, after fourth-quarter growth slowed to the weakest pace in seven years.

PetroChina, the nation's biggest oil company, added 0.9 percent to 11.77 yuan. China Petroleum & Chemical Corp, also known as Sinopec, rose 0.8 percent to 8.87 yuan.

Jiangxi Copper Co and Zijin Mining Group Co fell for the first time in seven days on lower prices of copper and gold.

Jiangxi Copper, China's biggest producer of the metal, lost 1.3 percent to 22.52 yuan. Tongling Non-Ferrous Metals Group Co, the No 2, slid 1.8 percent to 12.98 yuan.

HSI at 10-week high

Hong Kong shares rallied 3.4 percent to a 10-week high in heavy volumes yesterday. Turnover surged, rising to an 11-week high of HK$63.9 billion.

The benchmark Hang Seng Index ended 462.92 points higher at 13,910.34 points, breaching its 100-day moving average for the first time since June 2008.

Bloomberg - Reuters