Chinese shares sink 0.94 pct on profit-taking

BEIJING, May 20 (Xinhua) -- Chinese shares fell 0.94 percent Wednesday on profit-taking, erasing Tuesday's gains. The decline also followed an overnight drop on Wall Street.

The Shanghai Composite Index fell 0.94 percent, or 25.27 points, to 2,651.41.

The Shenzhen Component Index slid 0.53 percent, or 55.22 points, to 10,369.14.

Combined turnover contracted to 214.60 billion yuan (31.56 billion U.S. dollars) from 227.97 billion yuan on the previous trading day.

New energy firms gained for much of the day on talk that the government would unveil a support plan for the sector Thursday.

Donghua Energy, the Zhangjiagang-based liquefied oil storage company, rose 6.06 percent to 8.75 yuan. Shenzhen Topray Solar, a major solar consumer products manufacturer, gained 2.62 percent to 28.57 yuan.

However, new energy stocks were dragged down by profit-taking just 15 minutes before the markets closed, dealers said.

Airlines were broadly lower as the wholesale price of jet fuel rose 460 yuan to 4,450 yuan per ton as of Tuesday led by continuously rising crude oil prices.

Air China, the country's largest carrier, fell 1.38 percent to 6.41 yuan. China Southern Airlines retreated 2.38 percent to 5.34 yuan.

The State Council (cabinet) said Tuesday that the government would increase subsidies for consumers who replaced old models of vehicles and home appliances with new ones, as part of the effort to spur domestic spending and curb pollution.

Jinbei Vehicle Manufacturing, a major light truck maker, rose by the daily limit of 10 percent to 4.09 yuan. Dongfeng Motor climbed 3.70 percent to 5.05 yuan.

Suning Appliance, a giant consumer appliance retailer, edged up 0.07 percent to 15.16 yuan.

Despite the declines, the market still had the fundamental conditions for gains as the government continued to announce new measures to boost consumption, Chengdu-based Beising Investment said in a report to clients.

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Chinese shares edge up after rebound by coal producers

BEIJING, May 18 (Xinhua) -- Chinese shares reversed an early decline to closely slightly higher Monday, with a strong performance by coal stocks.

The benchmark Shanghai Composite Index edged up 0.28 percent, or 7.52 points, to 2,652.78. The Shenzhen Component Index rose 0.4 percent, or 40.82 points, to 10,314.04.

Combined turnover increased to 180.19 billion yuan (26.50 billion U.S. dollars) from Friday's 169.5 billion yuan.

Shares in Shanghai tumbled below the 2,600 mark in the morning, as financial and real estate stocks led the decline.

A strong rebound in coal stocks reversed the trend as investors took the view that rising oil prices might push up demand for coal, analysts said.

China Shenhua, the nation's biggest coal producer, rose 3.16 percent to 28.05 yuan. Datong Coal Industry gained 9.84 percent to 37.73 yuan.

China Yangtze Power rose 4.11 percent to 14.94 yuan after it announced a 107.5-billion-yuan-purchase of generation units at the Three Gorges Dam, its parent company and the world's largest hydropower project.

The State Council, or cabinet, announced a support plan Monday for the petrochemical industry. The cabinet urged oil producers and refiners to improve their product mix. It also vowed to improve the pricing mechanism for oil products and establish an oil product consumption tax that would be favorable for petrochemical companies.

It also pledged to build 20 oil refining bases, each with a capacity of 10 million tonnes.

However, the news came out after the market closed, too late to have an impact on Monday's trading.

PetroChina, the country's largest oil producer, fell 1.52 percent to 12.97 yuan. Sinopec, Asia's biggest refiner, fell 1.23 percent to 10.46 yuan.

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Chinese shares edges up 0.2% on Wall Street rally

BEIJING, May 15 (Xinhua) -- Chinese shares rose 0.2 percent Friday, lifted by an overnight rebound on Wall Street, which recovered from a loss of more than 2 percent the previous trading day.

The benchmark Shanghai Composite Index added 5.38 points to close at 2,645.26. The Shenzhen Component Index climbed 0.21 percent, or 21.08 points, to 10,273.23.

Combined turnover shrank to 169.5 billion yuan (24.85 U.S. dollars) from 191.2 billion yuan Thursday.

Gainers outnumbered losers by 448 to 321 in Shanghai and 410 to235 in Shenzhen.

The three plans unveiled by the State Council, or the Cabinet, this week to support industry growth helped hold market confidence. The plans are aimed at stimulating development of machinery manufacturing, nonferrous metals and bio-industry.

Medical-related stocks continued to rise for a second day on a 62.8-billion-yuan central plan to support the development of bio-industry aimed at achieving breakthroughs in key technologies, such as transgenic products and new drug development.

Shares for southwestern Chongqing-based Holley Pharmaceuticals rose by the 10 percent daily limit to 5.45 yuan. Shenzhen Neptunus Bioengineering closed at 7.48 yuan, up 10 percent.

The market was also backed by the rise in some heavyweights. Shares for PetroChina, the country's largest oil producer, edged up 0.46 percent to 13.17 percent. China Coal Energy was up 2.32 percent to 11.91 yuan.

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Chinese shares down 0.9% on fall of surrounding markets

Investors chat at a securities exchange
in Shanghai, China, May 14, 2009. China's benchmark Shanghai Composite
Index on the Shanghai Stock Exchange closed at 2,639.89 points Thursday,
down 23.88 points, or 0.9 percent, from the previous close. (Xinhua/Pei
Xin)
Photo
Gallery

BEIJING, May 14 (Xinhua) -- Chinese shares dipped 0.9 percent Thursday, following a global market downfall triggered by unfavorable economic data in the United States.

The benchmark Shanghai Composite Index lost 23.88 points to close at 2,639.89. The Shenzhen Component Index edged down 0.41 percent, or 42.22 points, to 10,252.15.

Wall Street dropped sharply in early trading Wednesday after retail sales unexpectedly decreased in April for a second month.

Weak blue chips pulled down the market. PetroChina declined 1.35 percent to 13.11 yuan (1.93 U.S. dollars), and Sinopec lost 2.21 percent to 10.6 yuan.

Financial shares led the fall. China Merchants Bank slid 2.93 percent to 17.23 yuan, and China Ping An declined 2.75 percent to 40.37 yuan.

As China's government released a plan Wednesday to stimulate bio-industry, medical-related stocks bucked trend, with Zhangzhou Tian-Mu-Shan Pharmaceutical Enterprise Co. and Guilin Layn Natural Ingredients Corp. rising by the daily limit of 10 percent to 8.56 yuan and 24.08 yuan respectively.

According to the plan, China will support 11 national research programs with at least 62.8 billion yuan in 18 months to achieve breakthroughs in key technology development that included transgenic products, new drug development, and the treatment of major infectious diseases such as HIV/AIDS and viral hepatitis.

The information technology sector gained 1.34 percent, as the programs also included an advanced new-generation broadband wireless mobile communications network, and high-end central processing units and software.

Combined turnover shrank to 191.2 billion yuan (28.11 U.S. dollars) from 222.89 billion yuan (32.63 billion U.S. dollars) Tuesday.

Losers outnumbered gainers by 443 to 409 in Shanghai. Gainers outnumbered losers by 367 to 365 in Shenzhen.

An investor sits at a securities
exchange in Shanghai, China, May 14, 2009. China's benchmark Shanghai
Composite Index on the Shanghai Stock Exchange closed at 2,639.89 points
Thursday, down 23.88 points, or 0.9 percent, from the previous close.
(Xinhua/Pei Xin)
Photo Gallery

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China to issue 13.1 bln yuan local bonds, 28.6 bln yuan book-entry T-bonds

BEIJING, May 13 (Xinhua) -- China's Ministry of
Finance (MOF) said Wednesday it would issue 13.1 billion yuan (1.92 billion U.S.
dollars) of three-year local government bonds from May 14 to 18 on behalf of
three provinces at a fixed annual coupon rate of 1.71 percent.

The plan allocates 3.1 billion yuan for Hubei
Province, 9 billion yuan for Sichuan Province and 1 billion yuan for Dalian city
in Liaoning Province.

The three local bonds will begin trading on May 20.

The ministry would also issue a batch of book-entry T-bonds
of 28.6 billion yuan, the eighth of its kind this year.

The one-year, short-term bonds have a fixed annual
coupon interest of 0.89 percent, with the selling period lasting from May14 to
18. Trading begins on May 20.

Chinese shares gain 1.74% on retail sales, gov't stimulus

BEIJING, May 13 (Xinhua) -- Chinese shares rose 1.74 percent Wednesday as investor confidence was boosted by April retail salesfigures, which analysts said indicated that government stimulus efforts were having a positive impact.

The benchmark Shanghai Composite Index rose 1.74 percent, or 45.59 points, to close at 2,663.77. The Shenzhen Component Index edged up 1.13 percent, or 115.22 points, to 10,294.37.

Gains outnumbered losses by 514 to 315 in Shanghai and 475 to 242 in Shenzhen.

Combined turnover climbed to 222.89 billion yuan (32.63 billion U.S. dollars) from 176.3 billion yuan on Tuesday.

Retail sales rose 14.8 percent in April year on year to 934.32 billion yuan, the National Bureau of Statistics (NBS) announced Wednesday.

The growth rate was 0.1 percentage point higher than in March.

Government stimulus policies, such as cuts in purchase taxes for small cars and subsidies for farmers to buy agricultural equipment, had played a big part in retail sales, said Yuan Gangming, an economic researcher at Tsinghua University in Beijing.

The April figures, including retail sales and fixed-asset investment, which were released Tuesday, had shown clearer signs of economic recovery and boosted investor confidence, said Yang Bo, analyst with Guotai Junan Securities.

PetroChina, one of the country's major state-owned oil producers, helped lift the market as the company announced a plan late Tuesday to raise 100 billion yuan through debt financing in 2009 to support its major strategic projects.

Its shares rose 6.07 percent, or 0.76 yuan, to 13.29 yuan, and led the oil and coal sector up by 2.67 percent.

Jinniu Energy Resources went up 8.38 percent to 35.42 yuan, and Pingdingshan Tianan Coal Mining climbed 7.36 percent to 31.67 yuan.

Industry support plans for the machinery and nonferrous metal sectors, released earlier in the week, were also helping maintain market growth, the analysts said.

Nonferrous metal stocks rose 2.19 percent, while Xiamen Tungsten rose by the daily limit of 10 percent to 16.27 yuan.

The machinery sector grew by 1.36 percent. Hailu Heavy Industry jumped by the daily limit of 10 percent to 26.5 yuan, and Hongcheng General Machinery gained 9.99 percent to 8.04 yuan.

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World downturn cuts 1Q output growth in China's Guangdong to 0.9%

Special Report: Global Financial Crisis

GUANGZHOU, May 3 (Xinhua) -- First-quarter industrial output growth slowed to a crawl in south China's Guangdong Province as the global downturn took its toll on the export hub.

The provincial economic and trade commission said Sunday that the output of major industrial enterprises rose just 0.9 percent from a year earlier to 303.788 billion yuan (44.5 billion U.S. dollars).

The growth rate was 12.7 percentage points lower than the year-earlier level and 4.2 percentage points below the national average.

However, the rate was 0.1 percentage point above the level in the first two months.

Aggregate profits of large enterprises, defined as those with annual sales of at least 5 million yuan, fell 33.73 percent to 21.72 billion yuan in the first two months, the commission said.

However, thanks to efforts to boost the provincial economy, Guangdong's fixed-asset investment rose 17.8 percent to 65 billion yuan in the first quarter, including 14.13 billion yuan for technical upgrading, up 50.4 percent.

S Korean economist: China's yuan may be Asia's settlement currency

Special Report: Global Financial Crisis

SEOUL, May 5 (Xinhua) -- A senior South Korean economist said in a report on Tuesday that the Chinese currency yuan may emerge as a settlement currency in Asia.

"Trade volume between China and other Asian countries is huge. If the yuan is used as a settlement currency in the region, the need to hold the U.S. dollar will decrease for Asian countries," said Park Bun-soon, a senior fellow at the Samsung Economic Research Institute.

However, he said it will take time for the Chinese currency to be a global reserve currency.

"Although the overwhelming influence of the U.S. economy is falling, it won't be easy for any currency to challenge the established reserve currency," he said.

Park said although the yuan may not become the key currency, it could be recognized as one of the major international currencies like the dollar and the euro after 2030 when the size of the Chinese economy is expected to surpass that of the U.S.

Promotions and prizes fuel Shanghai's retail spending

BEIJING, May 4 -- A series of promotions and prize awards fueled shoppers' enthusiasm during the May Day holiday in Shanghai as retail sales surged 14.2 percent from a year earlier.

Backed by various themed promotions, sales revenue at 423 large and medium retail businesses totaled 2.34 billion yuan (342 million U.S. dollars) over the three-day holiday, which started on Friday, the Shanghai Municipal Commission of Commerce said yesterday.

The growth is, however, down by 7.8 percentage points from the same period last year because consumers still felt the pinch of the economic slowdown and fewer travelers came to Shanghai amid A-H1N1 flu concerns.

"Facing the challenges, retailers and government-related departments have adopted various measures to spur domestic demand and sales exceeded earlier expectations," said Chen Yuxian, a commission official.

Consumers made a beeline for major department stores and shopping malls from Thursday as they were lured by massive price discounts and prize promotions.

Nine retailers, including the Pacific Department Store at the Xujiahui commercial district, offered gift vouchers of up to 300 yuan if each consumer bought 300 yuan worth of products. The Xuhui District government also allocated a 2-million-yuan prize in a lucky draw, including three Mercedes-Benz sedans and 150 gold bars valued at 4,300 yuan each.

The combined sales in the Xujiahui commercial district surged 28 percent compared to a year ago to 114 million yuan during the three-day holiday, beating an earlier estimate of 100 million yuan.

The New World City in Nanjing Road Pedestrian Mall also rang up 102 million yuan in sales after offering 120 yuan coupons for each purchase totaling 300 yuan.

Its average daily sales topped 781 million yuan over the three-day holiday, 4.6 times more than the sales in 2000 and was also the highest over the past nine years, according to the commission.

Retailers said the glittering sales also reflected the release of pent-up consumer demand that has been restrained over the past few months.

"Consumers need to buy shoes and garments as the season changes," said an official from Oriental Department Store in Xujiahui. "May is also a prime season for weddings and other celebrations, which gave a boost to market demand."

Purchases of clothes surged the most by 123.9 percent during the holiday and electronic products, home appliances, gold and health-care goods were also popular.

The combined sales of the Bailian Group rose 12.3 percent compared to a year ago to 888 million yuan over the three days.

Nextage Department Store in Pudong New Area rang up 23.1 million yuan in revenue on Friday, a jump of 60 percent and the No. 1 Department Store on Nanjing Road also gained 46 percent to 9.28 million yuan.

(Source: Shanghai Daily)

China's new bank loans fall in April

BEIJING, May 11 (Xinhua) -- China's bank credits fell considerably in April
after staying above 1 trillion yuan for three straight months, with
yuan-denominated new loans standing at 591.8 billion yuan (about 86.65 billion
U.S. dollars), the People's Bank of China (PBOC) said here Monday.

It brings outstanding loans in financial institutions up 29.72 percent to
35.55 trillion yuan by the end of April.

The loan increase in April was less drastic than in the first quarter,
which was largely in line with market forecasts.

The country has pumped 4.58 trillion yuan (670 billion U.S. dollars) of new
loans into the economy in the first quarter to stimulate growth.

The figure is already nearing 5 trillion yuan of new loans targeted for the
whole year. In March alone, new loans increased by a record 1.89 trillion yuan.

The reminbi deposit increased by 1.03 trillion yuan in April, making the
outstanding deposit 53.29 trillion yuan, up 26.21 percent.

In the first-quarter monetary policy report released earlier this month,
the central bank said it would continue to instruct financial institutions to
extend new loans, despite the earlier surge.

Ding Zhijie, deputy director of the Finance Institute of the University of
International Business and Economics, estimated that loan increases would
further slow down in the second quarter, but the liquidity would remain
abundant.

In the upcoming months, new bank loans should keep growing by 400 to 500
billion yuan per month, estimated Liu Yuhui, an economist with Chinese Academy
of Social Sciences (CASS).

The new loans this year would reach about 9 trillion yuan, said Liu.

The broad money supply, M2, gained 25.95 percent to 54.05 trillion yuan at
April end from a year earlier, said the bank.

M1, the narrowest measure of money supply that includes cash in circulation
plus corporate current deposits, reached 17.82 trillion yuan, up 17.48 percent.

The lasting growth in M1 showed more loans are entering real economy,
making the economy more active, experts said.

But the gap between M1 and M2 remained high, suggesting that a considerable
amount of savings was still locked up in fixed deposits, instead of flowing into
the economy.

China's new loan growth may decline in
April

BEIJING, May 5 (Xinhua) -- Credit extended by China's
banks in April may have dropped to above 600 billion yuan (about 87.85 billion
U.S. dollars) after staying at above 1 trillion yuan for three straight months,
industry insiders said.

Despite the sharp month-on-month decline, the scale and
growth of the April new loans was "more reasonable" than that in the first three
months this year, said Tuesday's China Securities Journal, citing unidentified
sources with banks. Full story

Banking regulator says government new
loans not limited to 5 trillion yuan

BOAO, Hainan, April 18 (Xinhua) -- China's banking
regulator said Saturday the government's target of new loans this year is not
limited to 5 trillion yuan (735.3 billion U.S. dollars), and all funds should
help keep the sustainable and rapid development of the economy.

Liu Mingkang, chairman of the China Banking Regulatory
Commission, made the remarks at a panel discussion of the Boao Forum for Asia
(BFA). Full story

China's new yuan loans
surge

BEIJING, April 17 -- The explosive credit growth over the
past few months has propped up the sagging economy, but it may also plant the
seed for an asset price bubble and inflation, according to experts.

"The positive news for the first quarter is the strong
loan growth," Wang Tao, head of China Economic Research with UBS Securities,
said at a forum on Wednesday. "It is a sign that China's growth relies more on
credit rather than fiscal stimulus." Full story

China's new yuan loans hit 1.3 trln
yuan in March

BEIJING, April 3 -- China's new yuan loans amounted to 1.3
trillion yuan in March as the country continued to pump in massive liquidity
into the economy to battle impacts of the global financial crisis, a source
close to the matter told China Daily.

A report by Caijing magazine on Tuesday said new yuan
loans extended by the Industrial and Commercial Bank of China, China
Construction Bank, Bank of China and the Bank of Communications exceeded 800
billion yuan in March. Full story

Chinese shares end seven days gains, decline on economic data release

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BEIJING, May 11 (Xinhua) -- After rising for seven consecutive trading days, Chinese shares declined 1.75 percent on Monday as caution returned upon the release of official economic statistics.

The benchmark Shanghai Composite Index declined 1.75 percent, or 45.9 points, to close at 2579.75. The Shenzhen Component Index dropped 3.09 percent, or 314.27 points, to 9868.79.

Encouraged by a Wall Street rally on Friday, shares on both bourses opened higher and hit record highs of 2,663 and 10,347 points in the morning, but went lower despite the strong performance of blue-chip stocks.

China's consumer price index (CPI) and producer price index (PPI), the main gauge of inflation at retail and wholesale level, fell 1.5 percent and 6.6 percent, respectively, year on year in April, the National Bureau of Statistics said Monday.

The result was largely in line with market expectations and analysts' forecasts, but it still triggered profit-taking activities when investors sought ways to relieve the pressure building from previous gains, said analysts.

Qi Jingmei, senior economist of State Information Center, said the fall of CPI and PPI, which might have reflected slack in both demand and supply, would dampen the optimism of many investors.

Coal, oil and alternative energy shares led the fall. Gansu Jingyuan Coal Industry Electricity Power Co. plunged 9.96 percent to 12.65 yuan, and Huayi Electric Company slid 8.21 percent to 15.31 yuan.

Gold shares followed, with Zhenzhou Mining Group Co. down 6.21 percent to 15.7 yuan, and Zhongjin Gold Corp. losing 5.63 percent to 60.01 yuan.

Financial shares managed to have a relatively better performance despite the overall market fall. The Bank of Communications closed up 1.11 percent to 7.3 yuan, while Shanghai Pudong Development Bank, China Minsheng Banking Corp. and Bank of Beijing all reported gains.

After the first swine flu case was confirmed on Chinese mainland, when a 30-year-old Chinese mainland male was tested positive for the A/H1N1 influenza, medical-related shares prospered. The sector had suffered strong sell-off pressure through last week.

Guilin Layn Natural Ingredients Corp. rose to the daily limit of 10 percent to 19.9 yuan, and Daan Gene Co. was up 10 percent to12.43 yuan.

Losers outnumbered gainers by 754 to 100 in Shanghai, and 645 to 72 in Shenzhen.

Combined turnover expanded to 264.4 billion yuan (38.88 billion U.S. dollars) from 244.3 billion yuan last Friday.

China's CPI down 1.5% in April; third
fall in a row

BEIJING, May 11 (Xinhua) -- China's consumer price
index (CPI), the main gauge of inflation, fell 1.5 percent year on year in
April, the National Bureau of Statistics (NBS) said Monday.

It was the third decline in a row since February, when the
CPI dropped 1.6 percent, which in turn was the first fall since October 2002. Full story

Chinese shares rise slightly

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Report: Global Financial Crisis

BEIJING, May 7 (Xinhua) -- Chinese shares rose slightly Thursday after the central bank pledged to maintain ample liquidity in the financial system on the previous night.

The benchmark Shanghai Composite Index rose 0.19 percent, or 4.93 points, to close at 2,597.45 Thursday. The Shenzhen Component Index, however, fell 0.4 percent, or 40.13 points, to 10,108.94.

Losers outnumbered gainers by 583 to 336 in Shanghai, and 508 to 280 in Shenzhen.

Combined turnover surged to 269.3 billion yuan (40.13 billion U.S. dollars) from 236.2 billion yuan on the previous trading day.

The central bank said Wednesday the government would stick to its moderately easy monetary policy, ensure ample liquidity at banks and continue to instruct financial institutions to extend new loans despite the earlier credit surge.

Encouraged by the news, banking sector rose an average of 2.05 percent. Bank of Nanjing and Shenzhen Development Bank both increased by more than 4 percent.

Industrial and Commercial Bank of China, the largest lender by market value, was up 0.94 percent to close at 4.28 yuan, and the China Construction Bank advanced 1.99 percent to 4.61 yuan.

Steel, alternative energy and non-ferrous metal sectors rose by more than 1 percent as the State Council, or the Cabinet, announced Wednesday the government would earmark 20 billion yuan to support technological upgrading in these industries. The allocation was expected to attract 460 billion yuan of private-sector investment.

Fujian-based Sansteel Minguang jumped by almost the 10-percent daily limit to close at 10.91 yuan. Xinjiang Ba Yi Iron Steel rose 5 percent to 9.24 yuan and Laiwu Steel Corp. 4.39 percent to 9.04 yuan.

In the non-ferrous sector, Yunnan Copper surged 3.14 percent to close at 21.02 yuan, and Zijin Mining, the nation's largest gold producer, edged up 0.45 percent to 8.93 yuan.

Chinese banks lend 200 bln yuan for disaster relief, after-quake rebuilding

BEIJING, May 9 (Xinhua) -- The China Banking Regulatory Commission (CBRC) said here Saturday the country's banking industry has issued loans worth of 205.36 billion yuan (30.2 billion U.S. dollars) to Sichuan, Shaanxi and Gansu provinces by March end for earthquake relief and reconstruction.

A total of 168.99 billion yuan went to Sichuan Province. Shaanxi and Gansu received 16.07 billion yuan and 20.31 billion yuan, respectively, said the commission.

The three provinces, all hit by the May 12 earthquake last year, received 12.83 billion yuan in loans for rebuilding houses for 645,000 rural families by the end of April.

The CBRC said it would further encourage credit loans and actively introduce various sources of capital into the quake-hit area.

China's top planning body, the National Development and Reform Commission, said Friday that jobs had been done on the investment of 360 billion yuan (about 52.7 billion U.S. dollars) into post-quake reconstruction by end of April, one-third of the planned total.

The commission said the government now aims to finish most of the reconstruction work in two years, instead of the originally planned three years.

Special Report: 1st Anniversary of Wenchuan Earthquake

Deals in high-end homes increase

BEIJING,May 7-- The buying sentiment for high-end residential projects continued to climb in Shanghai last month as more home buyers regained their confidence as the market recovered gradually.

A total of 672 units of new apartments, costing more than 30,000 yuan (4,392 U.S. dollars) per square meter, were sold in the city last month, an increase of 44 percent from March, according to the latest research by E-House (China) Holdings Ltd.

Maison des Artistes, a high-end residential project located in the Gubei area, could be a good example. The project, developed by Hutchison Whampoa, sold 56 units last month compared to 46 units in March and 11 units in February. Regency Park, another luxury residential project in Pudong's Huamu area and developed by the same company, also saw extremely good sales recently.

E-House statistics showed that 24 townhouses, priced between 13 million yuan and 15 million yuan each, were sold out in just three days after they were launched on April 25.

Meanwhile, a similar trend was seen in the local second-hand market in which more contracts involving luxury apartments were concluded during the period.

"Deals of 5 million yuan and above were secured last month at our branches, particularly in prime locations such as Xintiandi and Biyun where nearly half of the deals reached last month were in that category," said Ma Ji, head of research at Shanghai Centaline Property Consultants Ltd, which operates the city's largest real estate brokerage chain. "And we expect the strong momentum to ride through May."

The transaction volume of used apartments priced between 30,000 yuan and 40,000 yuan per square meter jumped more than 50 percent in March at Centaline, according to earlier statistics.

(Source: Shanghai Daily)

China to issue 15 bln yuan T-bonds, 15.4 bln yuan local bonds next week

BEIJING, May 8 (Xinhua) -- China's Ministry of Finance (MOF) said Friday it
would issue 91-day treasury bonds with a face value of 15 billion yuan (2.2
billion U.S. dollars) from May 11 to 13.

The issue price, set by competitive bidding, was 99.793 yuan. The annual
yield was 0.85 percent, the ministry said. Interest would be calculated from May
11 and paid in a lump sum at maturity.

The bonds could begin trading on May 15.

The MOF also said it would issue 15.4 billion yuan of three-year local
government bonds from May 11 to 13 on behalf of three provinces: 3 billion yuan
for Heilongjiang Province, 8.4 billion yuan for Yunnan Province and 4 billion
yuan for Zhejiang Province.

Each bond will have a fixed annual coupon rate of 1.77 percent.

The MOF would issue a total of 28.5 billion yuan of local government bonds
in the first half of May on behalf of six local governments, which would also
include Dalian City, Sichuan Province and Hubei Province.

China planned to float a total of 200 billion yuan of local government
bonds this year.

Chinese stocks up for 7th day, quake-rebuilding shares gain

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Report: Global Financial Crisis

BEIJING, May 8 (Xinhua) -- Chinese equities rose for a seventh consecutive
trading day Friday, led by heavyweights.

The benchmark Shanghai Composite Index rose 1.09 percent, or 28.2 points,
to close at 2,625.65. The Shenzhen Component Index edged up 0.73 percent, or
74.12 points, to 10,183.06.

Gainers outnumbered losers by 474 to 408 in Shanghai, and 401 to 346 in
Shenzhen.

Combined turnover shrank to 244.3 billion yuan (35.77 billion U.S. dollars)
from 269.3 billion yuan on the previous trading day.

Oil producers' shares rose Friday on expectations that the government would
raise benchmark retail prices for gasoline and diesel.

PetroChina, a subsidiary of the China National Petroleum Corp., the largest
oil producer, rose 2.73 percent to close at 12.41 yuan. Sinopec was up 4.61
percent to 10.44 yuan.

Banking and real estate sectors performed strongly on talk that the central
bank might cut the required reserve ratio, following the European Central Bank's
decision to cut interest rates to 1 percent Thursday.

China Merchants Bank was up 6.07 percent to 17.29 yuan. The Industrial and
Commercial Bank of China, the largest lender by market value, rose 1.87 percent
to 4.36 yuan.

China Vanke, the largest property developer by market value, surged 7.89
percent to 9.84 yuan, while Dongguan Winnerway Industrial Zone, COFCO Property
and Shenzhen Special Economic Zone Real Estate Properties all rose by the
10-percent daily limit.

Share prices for Sichuan- and Chongqing-based construction companies also
rose four days ahead of the May 12 earthquake anniversary. The government has
poured resources into rebuilding damaged housing, schools and infrastructure in
southwest China.

Sichuan Road Bridge jumped by the 10-percent daily limit to close at
8.78 yuan, and Chongqing Road Bridge surged 9.16 percent to 8.94 yuan.

China urges industry to upgrade technology

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Report: Global Financial Crisis

BEIJING, May 6 (Xinhua) -- China's State Council, or cabinet, Wednesday urged industries to upgrade their technology to boost market confidence and domestic demand.

The State Council said in an executive meeting that it would give "sufficient support" to several industries, including steel, non-ferrous metals, alternative-fuel cars, telecommunication equipment and logistics, to help improve technology.

The government would earmark 20 billion yuan (about 2.94 billion U.S. dollars) to support technological upgrading, which was expected to attract 460 billion yuan of private-sector investment as well, it said.

It also urged that retirees from bankrupt state-owned enterprises be brought into the basic health insurance system by the end of 2009. It said the government would allocate 42.9 billion yuan to subsidize the coverage.

China announces treasury bond issues for May 7-25

BEIJING, May 6 (Xinhua) -- China's Ministry of Finance (MOF) said Wednesday it would issue 27.76 billion yuan (4.06 billion U.S. dollars) of book-entry treasury bonds this week.

The issue period would run from May 7 to 11, the ministry said in a statement on its website.

The 10-year bonds have an annual interest rate of 3.02 percent, with payments half yearly.

The MOF also said it would issue 50 billion yuan worth of certificate T-bonds next week.

The bonds include 40 billion yuan worth of three-year bonds that carry a fixed annual interest rate of 3.73 percent and 10 billion yuan of five-year bonds with a 4.00 percent annual interest rate.

They will be issued from May 11 to 25, the ministry said. Interest will be paid in a lump sum at maturity.

Chinese shares edge up 0.98%, rising for fifth day

Special
Report: Global Financial Crisis

BEIJING, May 6 (Xinhua) -- Chinese equities rose for a fifth consecutive trading day Wednesday to a nearly nine-month high, led by banks and coal producers.

The benchmark Shanghai Composite Index finished the day at 2,592.52 points, up 0.98 percent or 25.18 points. The Shenzhen Component Index advanced 2.02 percent, or 201.26 points, to 10,149.07.

Gainers outnumbered losers by 650 to 194 in Shanghai and 562 to156 in Shenzhen. Combined turnover was 236.2 billion yuan (34.74 billion U.S. dollars), up from 231.16 billion yuan Tuesday.

Coal producers rose across the board by more than 3 percent on average on multiple positive developments, including a rebound in coal prices, lower stockpiles at ports, and signs of recovering demand.

China Shenhua, the nation's biggest coal producer, gained 1.74 percent to 26.96 yuan. Datong Coal Industry surged 5.34 percent to 33.51 yuan.

China Construction Bank, the country's second-largest lender, went up 0.44 percent to 4.52 yuan despite news that the Bank of America might sell some or all of its stake in the Chinese bank.

Shares in other banks also rose on buying by fund managers. The Industrial and Commercial Bank of China, the nation's biggest lender, gained 0.71 percent to 4.24 yuan. China Minsheng Banking Corp. gained 4.17 percent to 6 yuan.

Automakers posted strong gains after leading vehicle producers in China announced robust April sales numbers.

Chongqing Changan Automobile Company soared by the daily limit of 10 percent to 9.11 yuan, after it said its sales surged more than 50 percent in April. SAIC Motor Corp., a leading domestic automaker, climbed 9.63 percent to 14.12 yuan.

Dairy companies also rose after reporting profits in the first quarter against heavy losses last year during the melamine scandal, with sales picking up.

Beijing Sanyuan, which bought the scandal-hit Sanlu Group in an auction in March, surged 9.96 percent to 8.06 yuan after the company said a day earlier it made 32.32 million yuan in profits in the first quarter.

Inner Mongolia Yili Industrial Group gained 5.03 percent to 16.08 yuan. Its first-quarter profits
nearly doubled from a year earlier to 113 million yuan.

China's Social Security Fund reports 2008 loss, first since founding

Special Report: Global Financial Crisis

BEIJING, May 6 (Xinhua) -- China's national government pension fund, the Social Security Fund (SSF), reported its first annual loss since its founding eight years ago, losing 6.79 percent on its investments in 2008.

The loss mainly reflected last year's A-share market plunge, as the benchmark Shanghai Composite Index tumbled about 60 percent, according to the SSF's annual report released Wednesday.

Realized gains in 2008 stood at 23.36 billion yuan (about 3.86 billion U.S. dollars), against a nominal loss of 102.1 billion yuan, the SSF said.

In 2007, the SSF recorded profits on its investment of 145.35 billion yuan with a return rate of 43.19 percent.

The SSF had total assets of 562.4 billion yuan at the end of 2008, an increase of 122.8 billion yuan from 2007.

Despite last year's loss, the average annual return from investment for the past eight years hit 8.98 percent, far exceeding the average annual inflation rate of 2.35 percent. Its accrued investment income since its founding had reached 159.8 billion yuan.

The SSF would continue to improve its risk control and invest more prudently this year, cutting down on fixed income products and expanding its investment in private equity funds, an SSF official who asked not to be identified told Xinhua.

Dai Xianglong, chairman of the National Council for the Social Security Fund, said last month at the Boao Forum for Asia in China that the SSF might invest in three to five private equity funds this year.