China Stocks: CNR, Honglei, Shenzhen Gas, Zhejiang Satellite
The Shanghai Composite Index (SHCOMP), which tracks the bigger of China’s stock exchanges, rose 0.2 percent to 2,170.01. The measure has lost 23 percent this year as the central bank raised interest rates three times to cool inflation and exports to Europe slowed because of the region’s debt crisis. The CSI 300 Index gained 0.1 percent to 2,307.93.
Natural gas suppliers: Shaan Xi Provincial Natural Gas Co. (002267) (002267 CH) climbed 4 percent to 16.05 yuan, its biggest gain since Aug. 25. Shenzhen Gas Corp. (601139 CH) gained 2.9 percent to 11.40 yuan.
Investors speculated that the government is moving towards market-oriented prices, which would boost earnings of suppliers. Consumers in Guangdong’s cities will pay a limit of 2,740 yuan per 1,000 cubic meters for gas, according to a statement from the National Development and Reform Commission on its website yesterday. Urban users in Guangxi will be charged as much as 2,570 yuan per 1,000 cubic meters, it said. The proposed nationwide pricing scheme will be evaluated in the two provinces, the NDRC said, without giving a timeframe for its introduction.
Railcar makers: China CNR Corp. (601299) (601299 CH), the nation’s second-biggest trainmaker, lost 1.4 percent to 4.18 yuan, its lowest close since the stock began trading in December 2009. CSR Corp. (601766) (601766 CH), the biggest, slid 1.2 percent to 4.28 yuan. The railways ministry may buy 86 billion yuan ($13.6 billion) of railcars from CSR and CNR next year, the China Economic Times reported. The order was less than estimated, said Stanley Yan, an analyst at Masterlink Securities Corp.
Zhejiang Honglei Copper Co. (002647 CH), which makes copper tubes, slid 7.8 percent from its offer price to 11.80 yuan on its trading debut in Shenzhen.
Zhejiang Satellite Petrochemical Co. (002648 CH) tumbled 11 percent from the offer price to 35.65 yuan on the first day of trading in Shenzhen.
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