Special Report:Global Financial
Crisis
BEIJING, Nov. 10 (Chinese media) -- Chinese shares jumped
7.27 percent on Monday, spurred by the country's 4 trillion yuan (585.98 billion
U.S. dollars) plan to boost the economy, which was unveiled over the weekend.
The country's government pledged on Sunday an active
fiscal policy and moderately easy monetary policies to revive fast but steady
economic growth by expanding domestic demand.
A woman smiles in a stock brokerage
house in Shanghai, east China, on Nov. 10, 2008. The benchmark Shanghai
Composite Index closed up 7.27 percent, or 127.09 points, to finish at
1,874.80. The Shenzhen index advanced 6.50 percent, or 374.03 points, to
close at 6,127.12 points after China unveiled a 4 trillion yuan (585.98
billion U.S. dollars) plan over the weekend to sustain its economy.
(Chinese media/Pei Xin)
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The stimulus package was targeted projects in 10
major areas, such as low-income housing, rural infrastructure, water,
electricity, transport, the environment, technological innovation and rebuilding
from disasters, most notably the May 12 earthquake.
The policies include a comprehensive reform in
value-added taxes, which would cut industry costs by 120 billion yuan.
The benchmark Shanghai Composite Index closed up 7.27
percent, or 127.09 points, to finish at 1,874.80. The Shenzhen index advanced
6.5 percent, or 374.03 points, to close at 6,127.12 points.
Analysts said the plan demonstrated the government's
resolution to prop up the country's economic growth. The rise in U.S. stock
market on Friday helped recover investor confidence.
CITIC Securities chief analyst Cheng Qingwei said
both tax reform and macro-control policies were faster and bigger than expected.
Yang Yushan, manager assistant at Harfor Funds,
echoed Cheng, saying the 10 stimulus measures would change the dim predictions.
The combined turnover nearly doubled from Friday's
40.2 billion yuan to finish at 78.636 billion yuan (11.52 billion U.S. dollars).
Investors sit in front of the electronic
boards at a stock brokerage house in Chongqing, southwest China, on Nov.
10, 2008. (Chinese media/Zhou Hengyi)
Photo Gallery
All sectors were rallied by the stimulus measures.
Almost 150 shares in the two bourses rose to their daily limit. Stocks of
building materials, steel, machinery and coal benefited most.
Baosteel, the country's largest steel producer, rose
by the daily limit of 10 percent to close at 5.04 yuan, while Wugang finished at
5.01 yuan and Magang at 3.81 yuan.
The cement sector continued to rise with seven stocks
up by the daily limit of 10 percent, including Hebei Taihang Cement, which
closed at 3.47 yuan, and Anhui Conch Cement, the country's largest cement maker,
which closed at 20.74 yuan.
The machinery equities performed well. Sany Heavy
Industry Co. and Taiyuan Heavy Industry Co. both gained by the daily limit of 10
percent to end at 13.13 yuan and 13.30 yuan respectively.
Financial stocks posted widespread gains after the
government's decision to take the moderately easy monetary policies on Sunday.
China Merchants Bank, the sixth largest domestic lender, closed at13.71 yuan, up
9.5 percent. Shanghai Pudong Development Bank rose by the daily limit of 10
percent to finish at 14.04 yuan.
Brokers and energy shares also ended up. Guojin
Securities rose by 10 percent to 24.07 yuan as did Shenhua Group, the country's
largest coal producer, which ended at 19.35 yuan.
China's 4 trillion yuan stimulus to
boost economy, domestic demand
BEIJING, Nov. 9 (Chinese media) -- China said on Sunday it will
loosen credit conditions, cut taxes and embark on a massive infrastructure
spending program in a wide-ranging effort to offset adverse global economic
conditions by boosting domestic demand.
This is a shift long advocated by analysts of the Chinese
economy and by some within the government. It comes amid indications that
economic growth, exports and various industries are slowing. Full story
China adopts "active" fiscal,
"moderately easy" monetary policies to boost
economy
BEIJING, Nov. 9
(Chinese media) -- China has decided to adopt active fiscal policy and moderately easy
monetary policies to boost fast but steady economic growth by expanding domestic
demand, according to an executive meeting of the State Council on Sunday.
It is estimated that investment into infrastructure,
social welfare and other key sectors will amount to four trillion yuan by the
end of 2010. Full story
China tries to revive economy despite
daunting challenges
BEIJING, Nov.
9 (Chinese media) -- Although China doesn't celebrate Christmas, Lou Qijun is one of
the many Chinese toy and gift manufacturers who anticipates a visit from Santa
Claus every year in the form of seasonal orders from the Europe and North
America.
Not so this year, says Lou, chairman of Yiwu Qiling Toys
Co. Ltd., a leading toy producer in east China's Yiwu City, Zhejiang Province,
after returning from the Canton Fair, the country's biggest trade show which
concluded on Thursday. Full story
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