Alexa

China shares mixed amid global sell-off

China shares mixed amid global sell-off

Chinese shares were mixed Thursday, with developers up on a government report of stronger bank lending and auto stocks down despite a new tax cut aimed at boosting sales.
The benchmark Shanghai Composite Index closed down 0.5 percent, or 8.66 points, at 1920.21, while the Shenzhen Composite Index for China's smaller second exchange, rose 0.3 percent to 595.87.
Markets were boosted by lingering enthusiasm over a central bank report Wednesday that bank lending rose sharply in December, reflecting the early stages of a multibillion-dollar government economic stimulus plan.
"Those data had a huge impact on the market today. While the global markets were doing so badly, it still was able to make this performance," said Chen Huiqin, an analyst for Huatai Securities in China's eastern city of Nanjing. "The Chinese market has always been more capital-stimulated than economy-driven."
Real estate stocks rose on hopes for a new round of interest rate cuts.
Jinshan Development & Construction Co. surged 9.8 percent to 7.03 yuan, and Poly Real Estate group gained 2.3 percent to 16.05 yuan.
Airlines rose after the government canceled a fuel tax on ticket sales in hopes of boosting travel numbers.
Air China Ltd. advanced 1.2 percent to 4.33 yuan, while China Southern Airlines Ltd. gained 2.7 percent to 3.45 yuan.
China Eastern Airlines Ltd. soared by the daily limit of 10 percent to 4.73 yuan, after rumors that it might be moving toward a merger with smaller Shanghai Airlines Ltd.
Auto stocks fell despite the government's announcement Wednesday of a cut in sales taxes on smaller cars. Analysts said the move was smaller than expected.
Dongfeng Automobile Co. lost 1.3 percent to 3.16 yuan, and Hunan Changfeng Motors Co. fell 1.3 percent to 5.95 yuan.
In currency markets, China's yuan weakened to 6.8356 to the U.S. dollar, down from Wednesday's close of 6.83389.