China Stocks: Baoshan Steel, Baotou Steel, CNR, CSR, Suntek
The Shanghai Composite Index (SHCOMP), which tracks the bigger of China’s stock exchanges, fell 14.67 points, or 0.7 percent, to 2,190.11. The CSI 300 Index declined 1 percent to 2,335.70.
Internet-related stocks: Suntek Technology Co. (600728) (600728 CH), which supplies equipment for the Internet, jumped by the 10 percent daily limit to 7.45 yuan. Beijing Teamsun Technology Co. (600410 CH) added 1.3 percent to 10.96 yuan. Daheng New Epoch Technology Inc. (600288) (600288 CH) rose 1.4 percent to 5.91 yuan.
The nation will study speeding up the development of the Internet industry, the official Xinhua News Agency reported on Dec. 23, citing a State Council meeting chaired by Premier Wen Jiabao.
Railway-related stocks: CSR Corp. (601766) (601766 CH), the nation’s biggest train maker, slumped 7.3 percent to 4.42 yuan, its biggest loss since July 25. China CNR Corp. (601299) (601299 CH), the second largest, lost 4.3 percent to 4.28 yuan. China Railway Construction Corp. (601186 CH), builder of more than half the nation’s rail links since 1949, slid 1 percent to 3.99 yuan.
The railway ministry will invest 400 billion yuan ($63.2 billion) in rail infrastructure construction next year, Xinhua reported on Dec. 23, citing minister Sheng Guangzu. Spending was estimated at 469 billion yuan in 2011 and 709 billion yuan in 2010, according to the China Daily.
Steelmakers: Inner Mongolian Baotou Steel Union Co. (600010) (600010 CH) jumped 9.9 percent to 4.11 yuan, its biggest gain since June 7. Baoshan Iron & Steel Co. (600019) (600019 CH), the listed unit of China’s second-biggest steelmaker, rose 2.3 percent to 4.97 yuan. Angang Steel Co. (000898 CH) gained 1.6 percent to 4.57 yuan.
Steel stocks provide “strong safety” as they trade at 0.99 times book value, compared with 1 times during the 2008 global financial crisis, Chu Xueliang, an analyst at China Investment Securities Co., wrote in a report yesterday.
--Zhang Shidong. Editor: Allen Wan
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