Markets

Property, financial stocks drive Chinese share market higher

(Xinhua)
Updated: 2010-09-30 16:20

BEIJING - Chinese shares advanced Sept 30 as property stocks climbed despite the introduction of new real-estate tightening measures.

The benchmark Shanghai Composite Index rose 1.72 percent, or 44.98 points, to close at 2,655.66.

The Shenzhen Component Index gained 2.18 percent, or 244.68 points, to end at 11,468.54.

Combined turnover stood at 183 billion yuan ($27.31 billion).

Gainers outnumbered losers by 790 to 95 in Shanghai and 966 to 106 in Shenzhen.

Property developers rallied Thursday after the government rolled out weaker-than-expected measures to curb soaring property prices.

The government ordered banks nationwide to suspend lending for third home purchases and raised the minimum down-payment for all first-time home buyers to above 30 percent, according to a statement released Wednesday by the State Council, China's Cabinet.

The statement also said property tax pilot programs would be stepped up and then extended to the entire country, without providing further details.

China Vanke Co, the nation's biggest listed property developer, gained 7.55 percent to 8.4 yuan per share.

Poly Real Estate Group Co, the country's second-largest developer by market value, jumped 8.9 percent to 12.36 yuan per share.

Financial shares also posted widespread gains after China's central bank said on Sept 29 that the country would continue to implement a moderately easy monetary policy while making it more targeted and flexible.
The central bank also vowed to maintain an appropriate growth rate in lending. Industrial and Commercial Bank of China, the country's biggest lender, rose 0.75 percent to 4.04 yuan per share while Agricultural Bank of China, the nation's third-largest lender by assets, climbed 3.16 percent to 2.61 yuan per share.