Markets

G7 intervention boosts markets

By Zhang Shidong (China Daily)
Updated: 2011-03-19 09:48

The booth of Sany Heavy Industry Co at an equipment expo in Shanghai. On Friday, shares of Sany Heavy rose 7.59 percent, the most in three weeks. [Photo / China Daily]

SHANGHAI - Stocks on the Chinese mainland rose on Friday, as the Group of Seven nations intervened in the foreign exchange market to support Japan, and as reconstruction spending prospects lifted the profit outlook of metals companies.

Sany Heavy Industry Co jumped after profit more than doubled last year. Jiangxi Copper Co paced gains for copper producers as a Bloomberg survey showed metal prices may rally after the earthquake in Japan. Shanghai Electric Group Co led a rebound for power-equipment makers as Goldman Sachs Group Inc said a sell-off on nuclear power concerns was "overdone".

"The effect of the Japan nuclear leaks on China shouldn't be played up and the declines were sentiment-driven over the past few days," said Zhang Ling, general manager at Shanghai River Fund Management Co. "Still, China has inflationary pressure and the tightening is supposed to run through the whole year, holding back valuations."

The Shanghai Composite Index rose 0.33 percent to 2906.89 at the 3 pm close. The CSI 300 Index climbed 0.58 percent to 3215.69.

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Sany Heavy surged 7.59 percent, the most in three weeks, after saying net income for 2010 jumped 113 percent to 5.6 billion yuan ($851.7 million). China's machinery exports are likely to increase as the Japanese temblor reduces competition while imports from Japan will slow on supply constraints, Citigroup Inc said on Monday.

Jiangxi Copper climbed 0.56 percent to 39.26 yuan. Tongling Nonferrous Metals Group Co rose 0.49 percent to 28.45 yuan. Copper jumped 3.5 percent in New York on Thursday, the most in 10 months.

China Shenhua Energy Co rose 1.07 percent to 28.38 yuan. Yanzhou Coal Mining Co climbed 1.15 percent to 31.69 yuan.

Dongfang Electric Corp rose 1.58 percent to 28.88 yuan.

"Negative sentiment toward nuclear power has put pressure on Chinese power-equipment stocks, but we think the sell-off may be overdone in some cases," Goldman Sachs analysts wrote in a note to clients.

Jihua Group Corp, a manufacturer of protective uniforms against radiation, tumbled 4.66 percent to 4.71 yuan, trimming its weekly gain to 10 percent.

China Shipping Development Co added 0.92 percent to 9.87 yuan.

Gemdale Corp rose 2.33 percent to 6.59 yuan, the most in two weeks. The developer said net income for 2010 rose 52 percent to 2.7 billion yuan.

Jiangling Motors Corp climbed 2.45 percent to 30.99 yuan, the most since March 3. The company's net income for 2010 rose 62 percent from the previous year to 1.7 billion yuan.

Anhui Jianghuai Automobile Co rose 2.49 percent to 13.60 yuan. Jianghuai Auto said net income for 2010 jumped 246 percent to 1.2 billion yuan.

Bloomberg News