Alexa
  • Directory of Taiwan

China shares rise on economic confidence rebound

China shares rise on economic confidence rebound

Chinese shares rebounded Thursday as travel and auto stocks rose strongly following the market's biggest one-day loss in six weeks.
The benchmark Shanghai Composite Index added 32.49 points, or 1.4 percent, to close at 2379.88 after a 3.8 percent decline on Wednesday. The Shenzhen Composite Index for China's smaller second exchange jumped 1.6 percent to 793.13.
Investors were hesitant as they wait to see first quarter economic growth data due out next week, said Zhou Lin, analyst for Huatai Securities in the eastern city of Nanjing.
A government survey of businesses released Thursday showed entrepreneurial confidence rose in the first quarter of the year compared with the final quarter of 2008.
Tourism shares climbed in expectation of stronger revenues from the upcoming May Day holiday. China CYTS Tours Holding Co. soared by the daily maximum of 10 percent to 11.51 yuan and Beijing Capital Tourism Ltd. surged 6.7 percent to 16.97 yuan.
Insurers gained after Ping An Insurance Co. reported better-than-expected 2008 earnings. Ping An said profits plunged 98 percent due to a loss on its stake in troubled European bank Fortis NV, but investors had expected much worse results.
Ping An shares rose 6 percent to 41.13 yuan. China Life Insurance Co., the country's biggest insurer, added 4.2 percent to 23.59 yuan, and China Pacific Insurance Group climbed 5.3 percent to 17.49 yuan.
Auto-related shares jumped after an industry group reported auto sales hit a new monthly record of 1.1 million units in March.
Harbin Dongan Auto Engine Co. advanced 8.8 percent to 8.94 yuan and Dongfeng Automobile Co. rose 1 percent to 4.19 yuan.
In currency markets, the yuan strengthened to 6.8355 to the U.S. dollar, up from Wednesday's close of 6.83675.