China stocks rise as banks rally on steady earnings reports and gold stocks track bullion’s record high
- ABC chairman Gu Shu said the overall economy was showing positive signs of recovery which was creating a good environment for steady profit growth at his bank
- Chifeng Jilong Gold Mining rose by the maximum 10 per cent and peer Shandong Gold Mining rallied 7.9 per cent as the precious metal struck record highs
The Shanghai Composite Index added 1 per cent to 3041.16 on Friday, bringing the gain this month to 0.9 per cent. The CSI 300 Index of the nation’s biggest companies added 0.5 per cent. Hong Kong’s financial markets are closed for the Easter holidays and will reopen on Tuesday.
Chifeng Jilong Gold Mining rose to the daily limit of 10 per cent to 16.35 yuan and peer Shandong Gold Mining rallied 7.9 per cent to 28.23 yuan, leading gains among gold stocks, after the precious metal climbed to a fresh peak. Oil giant PetroChina jumped 6.8 per cent to 9.88 yuan while peer CNOOC advanced 3.8 per cent to 29.23 yuan per share.
“Sentiment is shifting” and the market has started to reward positive news on earnings, Steven Sun, head of research at HSBC Qianhai Securities said in a report on Thursday. “Market can grind higher if supported by fundamentals, especially earnings, in coming months,” he added.
“The overall economy is showing positive signs of recovery … creating a good environment for the steady profit growth of the bank,” said Gu Shu, ABC’s chairman.
Meanwhile, government data due this weekend is likely to show further signs of recovery in the world’s second largest economy. The official PMI manufacturing index is forecast to rise to 50.1 in March from 49.1 in February, according to a Bloomberg poll, which would mark the first expansion in manufacturing activity following five consecutive months of contraction.
Other key Asian markets rose tracking overnight gains in the US. Japan’s Nikkei 225 added 0.5 per cent and South Korea’s Kospi added less than 0.1 per cent. Australia’s markets are closed for the Easter break.