Chinese shares rise 3.57% on major economic conference

Special Report:Global Financial

Crisis

Two traders share a light moment at a stock exchange in Chongqing, southwest China Dec. 8, 2008. The benchmark Shanghai Composite Index on Monday advanced 3.57 percent, or 72.11 points, to 2,090.77. The smaller Shenzhen index climbed 3.43 percent, or 249.48 points, to 7,528.63.
(Chinese media Photo)
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BEIJING, Dec. 8 (Chinese media) -- Share prices on Chinese capital markets gained 3.57 percent on Monday, on prospects of more stimulus policies to buttress the economy from a three-day Central Economic Work Conference kicking off here on Monday.

This trend also echoed the rally of Wall Street on

the previous trading day and significant gains of regional markets on Monday,

dealers said.

The benchmark Shanghai Composite Index advanced 3.57

percent, or 72.11 points, to 2,090.77. The smaller Shenzhen index climbed 3.43

percent, or 249.48 points, to 7,528.63.

Gains outnumbered losses by 867 to 1 in Shanghai, and

by 739 to6 in Shenzhen, with 97 unchanged on the two bourses.

The conference, an annual event initiated more than a

decade ago, serves as a crucial mechanism for the Communist Party of China (CPC)

Central Committee and the State Council, the cabinet, to make policies to govern

the world's fourth largest economy.

Bank shares rose across the board on the report by

China Securities Journal that the country was mulling over lowering commercial

banks' business tax rate from the current 5 percent to 3 percent.

The Industrial and Commercial Bank of China, the

country's top lender, rose 2.5 percent to 4.1 yuan (0.6 U.S. dollar), with China

Construction Bank up 2.73 percent to 4.51 yuan and China Merchants Bank surging

8.27 percent to 14.14 yuan.

Wu Yonggang, an industry analyst with domestic Guotai

Junan Securities, predicted that the net profitability of commercial banks could

be raised by 3 to 4 percentage points with every 1 percentage point reduction in

the business tax rate

Automobile manufacturers, especially those producing

small-engine cars, and the new energy sector got a boost from the country's

latest fuel consumption taxes reform move, analysts said.

Tianjin FAW Xiali Automobile Co., Ltd., a leading

economical passenger car producer, surged 9.28 percent to 4.71 yuan. Sichuan

Chuantou Energy Co., Ltd., a major domestic new energy firm, jumped by the daily

limit of 10 percent to 14.85 yuan.

China on Friday released a draft reform plan,

schedule to take effect on Jan. 1, to solicit public opinion on abolishing six

feesnow charged for road or waterway maintenance and management but would charge

higher fuel consumption taxes on drivers.

Gasoline taxes would be raised from 0.2 yuan per

liter to 1 yuan and diesel taxes from 0.1 yuan per liter to 0.8 yuan.

China kicks off key economic

conference


　
BEIJING,

Dec. 8 (Chinese media) -- China's decision makers gathered here on Monday to determine

economic work for 2009 amid efforts to offset adverse impacts of global

financial crisis and maintain stable and sound economic growth. Full story