The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, rose 2.32, or 0.1 percent, to 2,708.98 at the 3 p.m. close. The CSI 300 Index gained 0.1 percent to 2,977.65. Stock symbols are in parentheses after company names.
Air carriers: Air China Ltd. (601111 CH), the nation’s largest international carrier, dropped 3.9 percent to 11.83 yuan. China Southern Airlines Co. (600029 CH), the nation’s biggest carrier by fleet size, fell 2.4 percent to 8.88 yuan.
The two airlines were downgraded to “neutral” because growth in high-speed railways will weigh on the industry and on the prospect there won’t be earnings “surprises” this year, Tao Wei, an analyst at China International Capital Corp., wrote in a report today. The report didn’t say what their previous ratings were.
Changshu Fengfan Power Equipment Co. (601700 CH), a producer of transmission towers, lost 14 percent from its offer price to 29.96 yuan on the first day of trading in Shanghai. The company issued 54.9 million shares at a price of 35 yuan in the initial public offering.
“Falling stock markets, higher prices and concern about earnings growth may be blamed for the decline,” said Zhang Qi, an analyst at Haitong Securities Co. in Shanghai, referring to the slumping IPOs.
Industrial Bank Co. (601166 CH), part-owned by a unit of HSBC Holdings Plc, added 1.8 percent to 25.55 yuan after saying 2010 profit rose 40 percent to 18.5 billion yuan from the previous year.
Joincare Pharmaceutical Group Industry Co. (600380 CH) advanced 7.6 percent to 11.81 yuan. The Chinese drugmaker said it plans to buy back as many as 25 million shares for as much as 300 million yuan. Separately, the company also said net income increased 53 percent last year on rising sales.