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Stocks advance to record as Citic, banks gain

(Bloomberg)
Updated: 2007-03-22 13:51
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Chinese mainland's stocks rose, beating a record set last month before the market's biggest plunge in a decade. Citic Securities Co advanced on speculation increasing trading values this year will boost brokerage revenue.
Stocks advance to record as Citic, banks gain
An investor monitors stock movements at a stock exchange market in Shanghai March 19, 2007. China's main stock index jumped 2.87 percent on Monday, nearing its all-time high, as bank shares surged following an interest rate hike at the weekend. [Reuters]
Stocks advance to record as Citic, banks gain
"The momentum is quite strong and there is abundant liquidity on the sidelines and ready to come into the market," said Zhang Ling, who manages the equivalent of US$1.09 billion at ICBC Credit Suisse Asset Management Co inBeijing. "The market still has room for upside."

Lenders gained afterShenzhen Development BankCo said net income for 2006 more than quadrupled on increased loan demand.

"The banks' profits have been rising since 2006; their prospects are positive," said Yi Yangfang, who helps manage the equivalent of US$5 billion at Guangfa Fund Management Co in Guangzhou. "Brokerages have more income from high trading values."

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TheShanghaiComposite Index, which tracks the bigger of domestic stock exchanges, rose 0.8 percent to 3,082.59, set to close at a record for a second day. The Shenzhen Composite Index, which covers the smaller one, added 0.9 percent to 813.23, headed for a third straight record close.

Citic Securities, China's biggest publicly traded brokerage, advanced 1.27 yuan (17 US cents), or 3.1 percent, to 41.90 yuan. The brokerage on March 15 said profit for 2006 rose almost sixfold last year.

The daily trading value for Shanghai's yuan-denominatedA sharesaveraged 82.8 billion yuan this year, compared with 23.7 billion yuan in 2006, according to data compiled by Bloomberg.



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