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Mainland stock markets bounce back as European headwinds subside
Global Times | March 19, 2013 22:03
By Louise Ho
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Stock markets on the Chinese mainland scored wins Tuesday as anxieties surrounding controversial stipulations to a financial bailout plan for Cyprus died down somewhat.

The benchmark Shanghai Composite Index added 17.41 points, or 0.78 percent, to finish at 2,257.43; while the Shenzhen Component Index surged 35.02 points, or 0.39 percent, to close at 9,034.04.

Both markets opened higher but sagged on losses from banking and liquor producers as the morning session progressed.

Later jumps in securities and property development stocks, combined with a reversal in banking shares, helped the indices turn around in afternoon trading, pulling the markets into an above-even finish. According to analysts, reports that negotiations will soon begin on a proposed tax of bank deposits in Cyprus gave most A-shares space to claw back from recent losses.

In developments closer to home, cement stocks rallied on optimism about China's urbanization plans. Shaanxi Qinling Cement (Group) Co jumped 8.62 percent to 6.05 yuan ($0.97).

Real estate stocks also managed to climb higher Tuesday even though rises in urban home prices last month have ignited speculations that the government may soon intervene with more aggressive curbs on the reheating market. China Merchants Property Development Co surged 5.25 percent to 24.44 yuan. China Vanke Co tacked on 2.43 percent to 10.95 yuan.

Solid performances from financial stocks in late trading also provided fuel for Tuesday's rebound. Industrial Securities Co increased 4.99 percent to 12 yuan. China Minsheng Banking Corp gained 2.59 percent to 10.31 yuan.

Tuesday's upswing didn't extend to liquor shares, which declined for a second straight day. Jiugui Liquor Co declined 3.21 percent to 25.34 yuan. Kweichow Moutai Co dropped 2.52 percent to 165.18 yuan.

Among individual stocks, Anhui Jianghuai Automobile Co fell past the 10-percent daily limit to 6.41 yuan after returning to trading Tuesday. The steep loss came after the company was exposed on CCTV's annual consumer protection broadcast using rusty steel to manufacture vehicle bodies.


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