Alexa
  • Directory of Taiwan

Chinese stocks hit record high, boosted by lower oil prices; yuan down against dollar

Chinese stocks hit record high, boosted by lower oil prices; yuan down against dollar

Chinese shares surged to another record high closing Wednesday as lower crude oil prices triggered buying of transportation shares. The yuan slipped against the U.S. dollar.
The benchmark Shanghai Composite Index gained 0.6 percent to 2,825.58, its second straight high record close. The Shenzhen Composite Index rose 2.7 percent to 610.42.
Crude oil futures ended moderately lower on the New York Mercantile Exchange on Tuesday after dipping below US$54.00 a barrel for the first time in more than 18 months.
"Airline shares will rise further if oil prices keep falling and their strong performance will boost the general market," said Zhou Lin, an analyst at Huatai Securities.
Air China rose 1.4 percent to 6.49 yuan and China Southern Airlines gained 5.1 percent to 5.17.
Bus and taxi company Shanghai Qiangsheng Holding surged 7.9 percent to 4.80. Rival Shanghai Bashi Industrial (Group) rose 2 percent to 4.10.
But some blue chips succumbed to profit-taking, reflecting mixed sentiment over the market's prolonged rally.
Tsingtao Brewery fell 1.7 percent to 16.84 after rising 3.2 percent a day earlier, and China Petroleum & Chemical slipped 1.7 percent to 11.01 after hitting the 10 percent upside limit Tuesday.
"Sentiment may turn cautious as the market reaches record levels and trading may become volatile in coming sessions," said Zhang Yuheng, an analyst at CSC International Holdings.
Brokerages jumped on expectations that recent active stock trading will boost their revenues.
CITIC Securities hit the 10 percent upside limit at 32.43 and Hong Yuan Securities rose 7.4 percent to 13.38.
In currency dealings, the dollar's surge against the euro and yen pushed the yuan lower late in the day, although demand for the local currency ahead of the Chinese New Year next month limited its fall.
On the over-the-counter market, the dollar was at 7.8080 around 0725 GMT, up from Tuesday's close of 7.8050.