China Vanke Co. (000002) and Shenzhen Airport Co. led gains among companies operating in Shenzhen after the China Securities Journal said the Chinese government will turn the southern city into a global financial and logistics center.
Vanke, the nation’s biggest listed property developer, climbed 7.9 percent to 9.84 yuan at the close, the biggest gain since Sept. 26. Shenzhen Airport climbed 5.8 percent to 7.09 yuan, while COFCO Property (Group) Co. (000031), the property unit of the country’s biggest grain trader, jumped the 10 percent daily limit to 7.68 yuan.
“The speculation about the plan to build Shenzhen into five centers has given a boost to the city-based companies,” said Liu Xiangning, a strategist at United Securities Co. in Shenzhen, referring to the plan to also develop the city into a trade, innovation and cultural center. “Local companies will probably enjoy more favorable policies.”
Shenzhen, based in the southern province of Guangdong and bordering Hong Kong, has submitted the restructuring proposal to the State Council, the China Securities Journal said.
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