China Stocks: China CSSC, China Eastern, China Life, Suning
Defense-related stocks: China CSSC Holdings Ltd. (600150) (600150 CH), a unit of the nation’s biggest shipbuilder, surged 7.5 percent to 36.63 yuan. Sichuan Chengfa Aero-Science & Technology Co. (600391) (600391 CH) rose 4.3 percent to 20.83 yuan. China Aerospace Times Electronics Technology Co. (600879 CH) added 1.5 percent to 9.30 yuan.
China plans to increase defense spending 11.2 percent to about 670 billion yuan ($106.4 billion) this year, Li Zhaoxing, spokesman for the NPC, said on March 4. The nation’s military expenditure will maintain the current growth rate in the next three-to-five years, Wei Meng and Dong Yaguang, analysts at Sinolink Securities Co., wrote in a report today.
China Eastern Airlines Corp. (600115 CH), the nation’s second-largest carrier, dropped 0.7 percent to 4.22 yuan. Chairman Liu Shaoyong said demand for international passenger and cargo flights is “clearly falling,” predominately because European consumers are cutting spending, he told reporters in Beijing yesterday. There will also be a “big difference” in full-year travel growth in 2012 from the previous year, he said.
China Life Insurance Co. (601628) (601628 CH), the nation’s biggest insurer, slipped 1.1 percent to 17.50 yuan, its lowest close since Jan. 9. Net income for 2011 may have dropped by 40 percent to 50 percent from a year earlier based on Chinese accounting standards, the company said in a statement yesterday.
Suning Appliance Co. (002024) (002024 CH), China’s biggest home appliance retailer by market value, jumped 8.6 percent to 10.10 yuan, the most since April 2009. Chairman Zhang Jindong said it will expand the range of products it sells beyond appliances.
--Zhang Shidong. Editor: Chan Tien Hin
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