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Stocks jump in morning despite rate increase
Domestic stocks rose in the morning session, though China's central bank raised its interest-rate for a fifth time this year on Friday as it tried to battle the highest inflation growth in more than a decade.
The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, rose 1.11 percent, or 59.17 points, to 5,371.35.
The Shenzhen Composite Index, which covers the smaller mainland stock market, added 1.04 percent, or 15.4 points, to 1,498.26.
Among the stocks on the Shanghai Composite Index, 584 rose, 177 fell and 81 were unchanged.
Insurance stocks were among the gainers in morning trading as higher interest rates will boost insurers' returns on investments.
China Life, the nation's largest insurer, surged 2.55 yuan (34 US cents), or 4.79 percent, to 55.82 yuan. Ping An Insurance (Group) Co, the second biggest, climbed 3.84 yuan, or 3.65 percent, to 109.01 yuan.
China raised the benchmark one-year lending rate to a nine-year high of 7.29 percent from 7.02 percent, effective last Saturday. The one-year deposit rate rose to 3.87 percent from 3.6 percent.
The interest raise also contributed to surges among banking stocks.
Industrial & Commercial Bank of China Ltd, the nation's biggest listed lender, added 0.02 yuan, or 0.31 percent, to 6.51 yuan. China Merchants Bank Co, the nation's seventh-largest lender, climbed 0.80 yuan, or 2.29 percent, to 35.72 yuan.
China Southern Airlines Co led a gain among carriers after fuel prices fell from a record.
China Southern, the nation's biggest carrier, advanced 0.84 yuan, or 3.25 percent, to 26.69 yuan. Air China Ltd., the country's largest overseas carrier, climbed 0.92 yuan, or 3.97 percent, to 24.12 yuan. China Eastern Airlines Co., the nation's third-largest carrier, jumped 0.49 yuan, or 2.82 percent, to 17.89 yuan.
Datong Coal Industry Co, China's second-largest coal company by capacity, rose 3.01 yuan, or 7.72 percent, to 42 yuan.
Coal prices in China, the world's largest producer and consumer of the fuel, are likely to rise as authorities strengthen regulations to improve environmental and safety standards at mines, according to Hou Shiguo, a deputy director in charge of industry policies at the National Development and Reform Commission.
But real estate firms suffered losses in the morning.
China Vanke, the nation's largest publicly traded developer, dropped 0.68 yuan, or 2.13 percent, to 31.25 yuan. Beijing North Star Co, the property arm of Beijing's city government, also dipped 0.07 yuan, or 0.50 percent, to 13.81 yuan.
Some non-ferrous metal stocks also declined.
Aluminum Corp of China Ltd declined 0.59 yuan, or 1.25 percent, to 46.45 yuan.
The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, rose 1.11 percent, or 59.17 points, to 5,371.35.
The Shenzhen Composite Index, which covers the smaller mainland stock market, added 1.04 percent, or 15.4 points, to 1,498.26.
Among the stocks on the Shanghai Composite Index, 584 rose, 177 fell and 81 were unchanged.
Insurance stocks were among the gainers in morning trading as higher interest rates will boost insurers' returns on investments.
China Life, the nation's largest insurer, surged 2.55 yuan (34 US cents), or 4.79 percent, to 55.82 yuan. Ping An Insurance (Group) Co, the second biggest, climbed 3.84 yuan, or 3.65 percent, to 109.01 yuan.
China raised the benchmark one-year lending rate to a nine-year high of 7.29 percent from 7.02 percent, effective last Saturday. The one-year deposit rate rose to 3.87 percent from 3.6 percent.
The interest raise also contributed to surges among banking stocks.
Industrial & Commercial Bank of China Ltd, the nation's biggest listed lender, added 0.02 yuan, or 0.31 percent, to 6.51 yuan. China Merchants Bank Co, the nation's seventh-largest lender, climbed 0.80 yuan, or 2.29 percent, to 35.72 yuan.
China Southern Airlines Co led a gain among carriers after fuel prices fell from a record.
China Southern, the nation's biggest carrier, advanced 0.84 yuan, or 3.25 percent, to 26.69 yuan. Air China Ltd., the country's largest overseas carrier, climbed 0.92 yuan, or 3.97 percent, to 24.12 yuan. China Eastern Airlines Co., the nation's third-largest carrier, jumped 0.49 yuan, or 2.82 percent, to 17.89 yuan.
Datong Coal Industry Co, China's second-largest coal company by capacity, rose 3.01 yuan, or 7.72 percent, to 42 yuan.
Coal prices in China, the world's largest producer and consumer of the fuel, are likely to rise as authorities strengthen regulations to improve environmental and safety standards at mines, according to Hou Shiguo, a deputy director in charge of industry policies at the National Development and Reform Commission.
But real estate firms suffered losses in the morning.
China Vanke, the nation's largest publicly traded developer, dropped 0.68 yuan, or 2.13 percent, to 31.25 yuan. Beijing North Star Co, the property arm of Beijing's city government, also dipped 0.07 yuan, or 0.50 percent, to 13.81 yuan.
Some non-ferrous metal stocks also declined.
Aluminum Corp of China Ltd declined 0.59 yuan, or 1.25 percent, to 46.45 yuan.
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