Chinese shares up 3.97% as securities regulator denies IPO rumour

Special Report:Global Financial Crisis

First tradingweek after

national Lunar New Year holiday

Monday

Tuesday

Wednesday

Thursday

Friday



1.06%

2.44%

2.28%

0.46%

3.97%

BEIJING, Feb. 6 (Chinese media) -- Chinese shares rose 3.97

percent on Friday as the China Securities Regulatory Commission denied market

talk that initial public offerings (IPO) will resume.

Stock holders watch at the electronic board at a Stocks Exchange in Shenyang, capital of northeast China's Liaoning Province, Feb. 6, 2009. China's benchmark Shanghai Composite Index on the Shanghai Stock Exchange closed at 2,181.24 points on Friday, up 83.22 points, or 3.97 percent, from the previous close. (Chinese media/Pei Xin)
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The Shanghai A-share index rose 83.22 points, or 3.97

percent, to close at 2,181.24, while the Shenzhen Component Index gained 358.48

points, or 4.84 percent, to finish at 7,771.90.

The speculation that China would allow companies to

raise money from the market through new IPO sparked a sell-off Thursday. The

index edged down by 0.46 percent to break the 2,100 mark.

To boost market confidence and prevent indices from

declining, the government suspended IPOs last November. More than 30 companies

are waiting for official approval to issue shares.

Combined turnover was 189.6 billion yuan (27.9

billion U.S. dollars), roughly the same as Thursday.

The non-ferrous metal industry, real estate,

automobiles, information technology and new energy shares saw the highest rises.

Changfeng Motors rose 9.98 percent to 6.61 yuan and

auto firm Weifu High Technology surged by the daily limit of 10 percent to 7.26

yuan on news that the government plans to help the auto sector expand rural

markets from next month.

Information technology companies gained on the news

that the government is to announce new measures to boost this sector.

Beijing Aerospace Changfeng rose 9.92 percent to 5.54

yuan, while Shenzhen Coship Electronics added 9.28 percent to 9.66 yuan.

Medical company Tianjin Tasly Pharmaceutical saw its

shares gain 1.04 percent to close at 13.6 yuan. On Thursday, the price dropped

2.68 percent as Chinese Academy of Engineering academician Li Lianda said one of

the company's heart disease medicines contained toxic ingredients.

What opportunities does the financial

crisis bring to China?

BEIJING, Feb. 6 -- What potential opportunities

lie in the international financial crisis? Reporters recently interviewed Zhang

Chenghui, Deputy Director General of the Research Institute of Finance under the

Development Research Center of the State Council, on this topic. Full story

China unveils plans to spur key

industries
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BEIJING, Feb. 5 -- The State Council has

unveiled support plans for the machinery and textile industries. The plans

include increasing export rebates for textile producers and supporting

technological upgrades for machinery makers.

At a State Council meeting on Wednesday presided over by

Premier Wen Jiabao, a series of plans to revitalize the machinery and textile

industries were announced. Full story

Chinese shares add 2.28% on upbeat

investor confidence

BEIJING, Feb. 4 (Chinese media) -- Chinese shares went

up 2.28 percent on Wednesday led by blue chips amid a booming confidence.

The Shanghai A-share index rose 46.94 points, or 2.28

percent, to close at 2,107.75, while the Shenzhen Component Index gained 211.22

points, or 2.91 percent, to finish at 7,477.63. Full story

China raises garment, textile export

tax rebate rate to 15%

BEIJING, Feb. 4 (Chinese media) -- China will increase the

tax rebate rate for textile and garment exports from 14 percent to 15 percent,

an executive meeting of the State Council (Cabinet) announced Wednesday.

The move would reduce exporters' costs and support

the textile industry, the Council said. The effective date of the new rate

wasn't specified.Full story

China central gov't cashes in another

$19 bln for stimulus plan

BEIJING, Feb. 3 (Chinese media) -- China's central government has

launched a new stimulus plan totaling 130 billion yuan (19 billion U.S. dollars)

to boost its economy, an official of the National Development and Reform

Commission (NDRC) said on Tuesday.

The fund is the second batch of investment from the

central budget following a 100 billion yuan allocated in the fourth quarter of

2008. Both were included in the country's 4 trillion yuan economic stimulus

package announced in November. Full story

China's policy stimulus to spur car sales in year of

ox