Chinese shares gain as gov't announces plans for health care reform

Special Report:Global Financial
Crisis

BEIJING, April 7 (Xinhua) -- Chinese equities rose slightly Tuesday after the government announced long-anticipated health reform plans.

The benchmark Shanghai Composite Index gained 0.8 percent, or 19.4 points, to close at 2,439.18. The Shenzhen Component Index, however, fell 0.13 percent, or 12.4 points, to 9,232.26.

Gains outnumbered losses by 641 to 275 in Shanghai and 568 to 210 in Shenzhen.

Combined turnover was 181.6 billion yuan (26.59 billion U.S. dollars), down from 241.45 billion yuan on the previous trading day.

China unveiled a blueprint for health care reform over the next decade Monday and followed up with further details Tuesday, launching a long-awaited plan to fix the ailing medical system and ensure fair and affordable care for all 1.3 billion citizens.

The reform proposals would provide a strong boost to the medical industry, as increased government spending would benefit pharmaceutical companies and medical instrument producers, analysts said.

The pharmaceutical sector, driven by the reform plans, was up 1percent Tuesday.

Wandong Medical, the leading X-ray equipment maker, rose 2.42 percent to close at 8.47 yuan.

Renhe Pharmacy Co. Ltd., based in Jiangxi Province's Jiujiang City, jumped by the 10-percent daily limit to close at 12.98 yuan. Jilin Zixin Pharmaceutical Industry Co. Ltd., rose 6.03 percent to17.06 yuan.

Coal shares performed strongly on word that coal inventories had begun to fall after major power plants increased coal consumption.

China Coal Energy Co. Ltd., a leading coal producer, rose by the 10-percent daily limit to close at 10.11 yuan. The nation's biggest coal producer, China Shenhua, saw its share price rise 5.35 percent to 23.08 yuan.

Yet shares of banking and real estate sectors fell on profit taking.

Bank of Nanjing fell 2.73 percent to close at 12.85 yuan and Industrial Bank fell 1.78 percent to 23.72 yuan.

China Vanke, the nation's largest real estate developer by market value, fell 0.92 percent to 8.59 yuan. Poly Real Estate was down 2.42 percent to 22.54 yuan.