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Shanghai stocks rise on industrial profit data
Aggregated Source: Shanghai Daily: Business

SHANGHAI stocks inched up today after China posted faster growth in industrial profits in April.

The key Shanghai Composite Index added 4.54 points, or 0.2 percent, to 2,293.08. Daily turnover was 99.9 billion yuan (US$16.4 billion).

Profits at China's industrial enterprises grew 9.3 percent year on year to 437 billion yuan in April, faster than the increase of 5.3 percent in March, data from the National Bureau of Statistics showed today.

Profits expanded 11.4 percent to 1.61 trillion yuan in the first four months of this year, 0.7 percentage points lower than the rate in the first three months, the data showed.

Yu Jianxun, an official with the statistics bureau's industry department, said the advance was boosted by better performance of electricity and heat industry, auto industry and electronics industry, but noted that the pickup was largely due to a low comparison base.

Analysts said the Chinese government is showing a bigger tolerance for slower economic growth as it shifts focus to deepening economic reform.

"China is accelerating reforms in areas like finance and taxation. This has strengthened investor confidence about the market and given support to the A-share market," Qilu Securities said in a report.

China will deepen the financial market reform, accelerate the development of multi-level capital markets, and steadily promote market-oriented interest rates, Chinese Premier Li Keqiang told business leaders in Switzerland on Friday.

Haitong Securities rose 2 percent to 11.47 yuan. CITIC Securities, China's biggest listed brokerage, gained 1.4 percent to 12.86 yuan. Huatai Securities climbed 4.3 percent to 10.35 yuan.

Most property developers declined after the National Development and Reform Commission said China is considering expanding a property tax trial to more cities and specific measures will be taken this year.

Poly Real Estate, China's second-largest developer, shed 0.2 percent to 12.24 yuan. Gemdale Corporation slipped 0.8 percent to 7.72 yuan.

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Copyright Shanghai Daily: Business