Chinese shares up 1% as recovery signs boost confidence

BEIJING, Feb. 2 (Chinese media) -- Chinese shares rose about

1 percent Monday, the first trading day after the national Lunar New Year

holiday, as signs of an economic recovery inspired investor confidence, analysts

said.

Total loans of Chinese banks hit 900 billion yuan

(about 130 billion U.S. dollars) in the first 20 days of January, up 12 percent

year-on-year, Premier Wen Jiabao told the World Economic Forum in Davos,

Switzerland, which ended Sunday.

A stock holder looks at the electronic

board of share prices at a securities exchange in Beijing, China, on Feb.

2, 2009. The benchmark Shanghai Composite Index closed up 1.06 percent to

2,011.68 and the Shenzhen index closed at 7087.61 on Monday, up 1.03

percent, on the first trading day of Chinese Lunar New Year.(Chinese media/Xing

Guangli)
Photo

Gallery

The figure convinced some investors that China's

economic growth could pick up again this year, analysts said.

The benchmark Shanghai Composite Index climbed 1.06

percent to 2,011.68. The Shenzhen Component Index was up 1.03 percent to

7,087.61.

Combined turnover was 94.95 billion yuan, slightly

down from 95.27 billion yuan on the previous trading day of Jan. 23.

Gains led losses by 820 to 50 in Shanghai and 700 to

60 in Shenzhen.

Agricultural stocks took the lead, boosted by a

government announcement that it would spur rural development. Hunan Dongting

Aquaculture rose by the daily limit of 10 percent to 3.82 yuan. Shandong Minhe

Animal Husbandry, the country's largest chicken breeder, was up 10.04 percent to

14.58 yuan.

The State Council and the Central Committee of the

Communist Party of China jointly issued their first document of the year Sunday,

in which they said "the development of agriculture and rural areas in 2009 is of

special significance."

The document promised increased government spending

to stimulate the rural economy. Last year, budgeted investment for agriculture

and rural development grew 37.9 percent year-on-year to 595.55 billion yuan.

Shares of gold companies gained across the board

following a price rise of the metal on world markets. Gold on the New York

Mercantile Exchange closed at 926 U.S. dollars over the weekend, up 8 percent

from the previous week.

Southeastern Fujian-based Zijin Mining Group, the

country's biggest gold producer, was up 9.94 percent to 5.53 yuan. Tianjin-based

Zhongjin Gold rose 10.01 percent to 39.99 yuan.

Recreation-related stocks edged up on news that both

the number of tourists and tourism income of 19 major tourist destinations

across China increased about 15 percent year-on-year during the Lunar New Year

holiday.

China United Travel rose 2.72 percent to 3.4 yuan,

while Guilin Tourism Corp. closed at 7.52 yuan, up 5.03 percent.

A stock holder looks at the electronic board of

share prices at a securities exchange in Beijing, China, on Feb. 2, 2009.

The benchmark Shanghai Composite Index closed up 1.06 percent to 2,011.68

and the Shenzhen index closed at 7087.61 on Monday, up 1.03 percent, on

the first trading day of Chinese Lunar New Year.(Chinese media/Xing

Guangli)
Photo

Gallery

Stock holders watch the changing of

share prices at a securities exchange in Beijing, China, on Feb. 2, 2009.

The benchmark Shanghai Composite Index closed up 1.06 percent to 2,011.68

and the Shenzhen index closed at 7087.61 on Monday, up 1.03 percent, on

the first trading day of Chinese Lunar New Year.(Chinese media/Xing

Guangli)
Photo

Gallery