Equities rebound led by airlines, automakers

08:52, January 29, 2010      

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Mainland equities rose for the first time in five days, as a rally for airlines and automakers on lower crude oil prices and higher profit from Chongqing Changan Automobile Co overshadowed declines for banks.

Air China Ltd and China Southern Airlines Co climbed more than 3 percent as crude oil traded near a five-week low. Changan Automobile rose for the first time in eight days. Industrial and Commercial Bank of China Ltd paced declines for banks after the regulator told lenders to step up scrutiny of property loans.

The Shanghai Composite Index added 7.54, or 0.3 percent, to 2,994.14 at the close, snapping a loss of 5.5 percent over the past four days. The CSI 300 Index rose 0.3 percent to 3,206.57.

"Should the government's policies stay as they are now and not go tougher, lots of investors may come in at the level below 3,000," said Larry Wan, the Shanghai-based deputy chief investment officer at KBC-Goldstate Fund Management Co. "The economy is still in good shape."

Air China rose 3.5 percent to 10.28 yuan, the steepest gain in almost two weeks. China Southern added 3.4 percent to 6.10 yuan.

Crude oil for March delivery fell 1.4 percent to $73.67 a barrel in New York on Wednesday, the lowest settlement since Dec 21.

Changan Automobile added 1.9 percent to 12.12 yuan after saying 2009 profit may have climbed more than 4,000 percent.

FAW Car Co rose 2.5 percent to 20.50 yuan. Anhui Jianghuai Automobile Co gained 2.2 percent to 9.38 yuan.

Industrial and Commercial Bank of China slid 0.8 percent to 4.86 yuan.

Hang Seng rises

Hong Kong stocks rose as investors took advantage of the benchmark index's longest run of declines in a year to buy, and US president Barack Obama called on Congress to stimulate the economy and create jobs.

The Hang Seng Index climbed 1.6 percent to 20,356.37 at close, snapping a six-day, 7.6 percent drop. The Hang Seng China Enterprises Index rose 2.3 percent to 11,636.03.

Futures on the Hang Seng Index advanced 1.9 percent to 20,347. About three stocks rose on the 42-member Hang Seng Index for each that declined.

Source: China Daily
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