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BIZCHINA> Top Biz News
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Chinese shares up 1.04% on record budget deficit
(Xinhua)
Updated: 2009-03-05 15:39 Chinese equities edged up 1.04 percent Thursday after the government said it would run the largest budget deficit in the nation's modern history this year, analysts said. The benchmark Shanghai Composite Index rose 22.97 points to 2,221.08. The Shenzhen Component Index was up 0.18 percent, or 14.59 points, at 8,242.28. Aggregate turnover surged to 231.1 billion yuan ($33.79 billion) from 195.75 billion yuan Wednesday.
Premier Wen Jiabao told the opening of the parliament's annual session Thursday morning that China would have a 950 billion yuan budget deficit this year, nearly 3 percent of GDP. The previous record for the deficit was 319.8 billion yuan in 2003, and last year's deficit was only 180 billion yuan. Economists said the deficit remained in a safe range, and it might be necessary to spend even more if economic growth weakened further in the second quarter. Wen also announced 2009 forecasts for GDP and the consumer price index of 8 percent and 4 percent, respectively. New yuan-denominated loans this year were expected to increase to more than 5 trillion yuan, he said. That figure was taken as favorable news for financial issues. The top three state-owned commercial banks' shares rose after the deputy general manager of the China Investment Corp., Wang Jianxi, said that the sovereign wealth fund would buy shares of the banks when necessary. He made the comment to the joint session of China's top legislative and policy bodies. Property and non-ferrous metals shares were among other large gainers. Poly Real Estate Group was up 2.36 percent to 20.38 yuan, while Gemdale Corp. rose 1.23 percent to 9.04 yuan. Zijin Mining Group, the largest gold producer, saw its shares rise 3.38 percent to 8.87 yuan. Jiangxi Copper and Yunnan Copper rose by 3.65 percent and 3.35 percent to 17.34 yuan and 14.19 yuan, respectively. (For more biz stories, please visit Industries)
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