INDUSTRIAL and consumer stocks lifted the Shanghai index today on speculation these companies will be most resistant to government plans to rein in economic growth and asset prices.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, inched up 0.62 percent, or 32.17 points, to 5,233.35 at 3pm today.
Winners in the Shanghai market outnumbered losers 664 to 93 and 89 were unchanged.
The Shenzhen Composite Index, which covers the smaller mainland stock market, gained 1.65 percent, or 23.25 points, to 1,433.06.
Datang Power, China’s second-biggest electricity producer by market value, led the gain among industrial stocks today.
Datang Power surged 8.55 percent, or 1.48 yuan (20 US cents), to 18.79 yuan, extending a six-day, 12 percent gain. Huaneng Power International Inc, the listed unit of China’s largest power group, added 0.16 percent, or 1.1 yuan, to 15.01 yuan.
Consumer companies also rose today as investors switched stocks expected to be hurt by the government’s tightening measures.
Suning Appliance Co, China’s second-biggest home appliance retailer, gained 4.10 percent, or 2.85 yuan, to 72.30 yuan. Kweichow Moutai Co, the maker of Moutai, the fiery liquor used at official banquets, rose 2.55 percent, or 5.51 yuan, to 222.01 yuan.
Banks and real-estate firms remained gloomy today.
Industrial and Commercial Bank of China Ltd, the nation’s biggest listed lender, fell 1.61 percent, or 0.13 yuan, to 7.95 yuan. Gemdale Corp, a Chinese developer allied with ING Groep NV, dropped 1.79 percent, or 0.69 yuan, to 37.89 yuan.
The central bank has asked commercial lenders to set aside more reserves on 10 occasions this year, to curb loan growth. The bank raised companies’ borrowing costs to a nine-year high last week, the sixth such attempt this year to cool lending and inflation.
Airlines suffered a broad sell-off today on concerns rising crude oil prices will erode future earnings.
Air China, the world’s biggest airline by market value, recovered a little from morning losses and ended down 0.67 percent, or 0.18 yuan, to 26.52 yuan. China Southern shed 1.80 percent, or 0.49 yuan, to 26.69 yuan.
Crude oil rose as much as 0.7 percent to US$94.80 a barrel in after-hours trading in New York on speculation that a US Energy Department report will show inventories in the world’s largest energy user fell for a sixth week.