Beijing land prices reach new high, property shares respond

Mainland markets advanced, led by property shares, after land prices reached new highs in Beijing while Hong Kong stocks declined, led by commodity-related shares.

The Shanghai Comprehensive Index advanced 1.61 percent to 2975.31t. The small and medium sized enterprises SME Comprehensive Index slid 0.12 percent to 4333.77.

The Hang Seng Index slid 0.39 percent to 18528.51, as big energy firms fell with the drop in oil price. The Hang Seng Growth Enterprises Index however advanced 0.64 percent to 590.49. The Hang Seng China Enterprises Index lost 0.45 percent to 10987.57.

Taiwan's TAIEX Index dropped 1.12 perent to 6391.15.

Petro China Co. (SH:601857;HK:0857), the nation's largest oil producer, advanced 3.22 percent on Shanghai trading but slid 0.58 percent on Hong Kong trading.

Jiangxi Copper Co. (SH:600362;HK:0358), China's largest producer of the metal, gained 0.47 percent on Shanghai but lost 2.66 percent on Hong Kong.

Lianhua Supermarket Holdings (HK:0980) surged 11.13 percent on reports that it will acquire it rival Hualian.

Alchohol shares rise


Xinghuacun Fen Wine raised the price of its 10-year-old Fenjiu liquor by 10 percent starting on June 26, it said in a statement dated June 27.

Kweichow Moutai Co .(SH:600519), the nation's biggest producer of spirits by market value climbed 7.82 percent. Wuliangye Yibin Co.(SZ:000858), the second-largest, added 4.92 percent. Lu Zhou Lao Jiao Co. (SZ:000568) surged 8.26 percent after the announcement of its generous dividend plan.

Coal shares rise on expectations of rise in power output

China Shenhua Energy Co.(SH:601088;HK:1088), the country’s largest coal producer, jumped 7.9 percent on Shanghai trading and 1.97 percent on Hong Kong trading. Yanhzhou Coal Mining Co.(SH:600188;HK:1171) gained 3.44 percent on Shanghai and 1.13 percent on Hong Kong.

Electricity output may rise in June, ending an eight-month drop, as the economy recovers and temperatures climb across the nation rise, the National Development and Reform Commission said in a statement on June 26. Output by June 23 was 2.37 percent higher than the same period a year earlier, it said.

Property shares rose on higher land price

The price of land in Beijing was raised to RMB 15,217 per square meter last Friday, the highest in history. House price will be higher, too, developers say.

Mainland-listed property shares rose an average 3.34 percent today. The Hang Seng Propety Index gained 0.02 percent.

China Vanke Co.(SZ:000002), the nation’s largest listed developer, advanced 2.3 percent. Poly Real estate Co.(SH:600048), the second-largest, added 4.06 percent. Zhejiang WHWH Industry Co.(SH:600576) and Huayuan Property Co.(SH:600743), surged to the 10 percent trading cap.

Premium Land (HK:0164) surged 15.38 percent. Zhong An Real Estate (HK:0672) rose 13.64 percent.

Following property, cement shares also rose. Prosperity International (HK:0803) surged 18.87 percent. Shanghai Allied Cement (HK:1060) advanced 3.39 percent. Hebei Taihang Cement Co.(SH:600553) surged to the 10 percent trading cap.

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