Monday, 27 July 2009

Chinese gold producers soar to trading limit

China markets rise to new highs, led by metals on mainland markets and real estate in Hong Kong. The Shanghai Composite Index rose 2 percent. The Hang Seng Index finished up 1.4 percent. Taiwan's TAIEX index rose 0.8 percent.

Chinalco (SH:601600), China's largest aluminium producer, rose 4.5 percent. Mainland-listed gold producers surged. Shandong Gold Mining (SHA:600547), Zhongjin Gold Corp. (SHA:600489), Shandong Humon Smelting Co. (SZ:002237) and Chenzhou Mining Group Co. (SZ:002155) all rose to the 10 percent cap.

Sichuan Expressway soared 203 percent from its offer price in what was Shanghai's first IPO following a nine-month moratorium. Everbright Securities Co. unit won approval for an initial public offering in Shanghai. Its mother company China Everbright (HK:0257) 0165 Surged 11.31 percent.

China Mobile advanced 4.2 percent and Cnooc, China's biggest offshore oil producer, gained 1 percent after the Apple Daily wrote that they would be the first Hong Kong-listed Chinese companies to sell shares on the mainland.

Shares of retailers gained after the National Development and Reform Commission said it will continue to stimulate consumption despite signs the economy is already in recovery.

Fashion companies rose. Giordano (HK:0709) jumped 13 percent. Bossini International Holdings (HK:0592) rose 11 percent. I.T. Ltd (HK:0999) rose 3.66 percent.


www.proactiveinvestors.co.uk

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