China markets rose for a fifth day led by steel makers and cleantech stocks. The Hang Seng Index was up 1.8 percent. The Shanghai Composite Index added 0.1 percent. Taiwan's Taiex Index rose 1.6 percent, closing at an 11 month high.
According to the China Petroleum and Chemical Industry Association (CPCIA), consumption of crude oil dropped by 2.9 percent year-on-year in the first half of 2009, much slower than the 6.5 percent drop in the first quarter.
China's machinery industry output expanded 7.28 percent year-on-year in the first half of 2009, the China Machinery Industry Federation (CMIF) said yesterday. Electronic instrument and machinery stocks rose 2.84 percent and 2.03 percent respectively on the news.
Beijing Yanjing Brewery (SZ:000729) rose 1.5 percent after reporting profit increase of 25 percent in the first half this year, boosted by sales.
Airlines performed well, with China Southern Airlines (HK:1055) surging 12 percent, and China Eastern (HK:0670), which recently announced its planned takeover of Shanghai Airlines, rising 9.95 percent.
Steel shares rise high, seven stocks hit trading cap
Steels shares gained 7.41 percent on average, with Boashan - China's largest steel producer, rising 8.7 percent and seven companies surged to the 10 percent cap, including: Angang 8.2 in Hong Kong (SH:000898, HK:0347), Inner Mongolia BaoTou Steel Union Co. (SH:600010), Jinan Iron and Steel Company Ltd. (SH:600022), Nanjing Iron & Steel (SH:600282), Anyang Iron & Steel Inc. (SH:600569), Liuzhou Iron & Steel Co. (SH:601003) and SGIS Songshan Co. (SZ:000717)
Baoshan Steel, China's biggest steelmaker, rose 8.7 percent to 9.40 yuan, the biggest gain since Feb. 16. Angang Steel Co., the No. 2, jumped 10 percent to 17.11 yuan. Wuhan Iron & Steel Co., the third biggest, advanced 5.9 percent to 11.22 yuan. Benchmark Chinese steel prices reached the highest since Feb. 5 today, data from Beijing Antaike Information Development Co. showed. Steel prices have gained 25 percent since April 1.
Wind-power, smart-grids and cleantech rise on Premier's words
Chinese Premier, Wen Jiabao, told the press that China should intensify efforts to study smart-grid technology for wind power and to boost the use of the renewable energy.
Xinjiang Goldwind Sci & Tech Co. (SZ:002202) the nation's biggest maker of wind turbines surged 10 percent in Shanghai, and as did Shanghai Electric Group (SH:601727, HK:2727) - a company that could benefit from investment in China's grid.
Other grid related companies that rose included: Dongfang Electric Corporation Limited (SH:600875, HK:1072) which rose 6.7 percent on Shanghai and 8.3 percent Hong Kong, and Northeast Electric Development Co. Ltd. (HK:0042) rose 6.7 percent.
Other cleantech stocks that rose today included Singyes Solar (HK:0750), a maker of PV curtain walls, which rose 15.3 percent. GreaterChina Technology Group (HK:8032), which is planning to sell energy efficient air conditioning across mainland China, also rose 2.15 percent.
Petrol price cut by government
China will cut petrol prices tomorrow by RMB220 yuan (US$32) per metric ton reflecting a drop in global crude costs. China only recently raised the price of petrol by 11 percent on June 30.
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