Chinese stocks rally on upbeat economic data

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Chinese stocks rally on upbeat economic data

(Xinhua) 18:18, September 09, 2013

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An investor is seen in front of a screen showing stock information at a trading hall of a securities firm in Shanghai, east China, Sept. 9, 2013. Chinese shares rallied on Monday as newly released data concerning consumer inflation, producer price and foreign trade pointed to a strengthening national economy. (Xinhua/Ding Ting)

Chinese stock market posted this year's widest daily gains on Monday as newly released data concerning consumer inflation, producer price and foreign trade pointed to a strengthening economy.

The benchmark Shanghai Composite Index rose 3.39 percent, or 72.52 points, to finish at 2,212.52.

The Shenzhen Component Index gained 2.71 percent, or 224.40 points, to finish at 8,504.74.

Combined turnover on the two bourses expanded to 315.05 billion yuan (51.11 billion U.S. dollars) from 225.1 billion yuan the previous trading day.

The National Bureau of Statistics announced on Monday that China's consumer price index (CPI) rose 2.6 percent year on year in August, down from 2.7 percent in July.

The producer price index (PPI) fell 1.6 percent in August from a year earlier, with the pace of decrease easing for three straight months, the bureau said.

Sunday's customs data also indicated improved foreign trade, with August's trade surplus widening by 8.4 percent year on year to 28.52 billion U.S. dollars, the highest since January this year.

Positive signs in the national economy drove up the market, sending 45 stocks up by their daily limit of 10 percent.

The financial sector led Monday's rises, with the sector's sub-index climbing 6.11 percent.

Five banks, including Shanghai Pudong Development Bank Co., Ltd., Agricultural Bank of China Limited, Bank of Communications, Industrial Bank Co., Ltd. and Ping An Bank Co., Ltd. surged by the highest possible daily rise of 10 percent.

Premier Li Keqiang said in his article published on Financial Times on Monday that China will continue to promote administrative management reform, the fiscal and taxation reform, financial reform and price reform.

Analysts said the improvement in the financial sector was boosted by a State Council statement on Friday that China is about to launch pilot projects with private capital participation in the finance, petrol, power, railway, telecommunications, resource development and public utilities sectors.

Other major sectors, including the real estate sector, the coal sector and the nonferrous metal sector all recorded strong performances on Monday, up 2.25 percent, 2.02 percent and 1.89 percent, respectively.