| Domestic key index gains; China Life rises |
SHANGHAI, July 13 -- DOMESTIC key stock index gained for a third day. China Life Insurance Co climbed for a second day on speculation insurers will be allowed to double the amount of assets invested in local equities to 10 percent. Jilin Yatai (Group) Co, an investment holding company, rose after forecasting a surge in profit.
China Minsheng Banking Corp led a drop among lenders as some investors judged the recent gains as excessive.
The Shanghai Composite Index, which tracks the bigger of the mainland's stock exchanges, slipped 1.6 to 3,914.40. The Shenzhen Composite Index, which covers the smaller one, fell 0.1 percent to 1,090.
"Strong earnings growth has lured some investors back into the market,'' said Yan Ji, an investment manager at HSBC Jintrust Fund Management Co in Shanghai, which manages about US$517 million. ``Given the momentum, the market still has room to gain.''
China Life, the nation's biggest insurer, gained 0.36 yuan(5 US cents), or 0.8 percent, to 46.53 yuan.
The China Insurance Regulatory Commission has told the asset management arms of insurance companies to prepare for buying more domestic stocks, industry executives said. The move will help China Life, Ping An and rivals boost returns from their US$321 billion of assets as premium growth slows. The CSI 300 Index has risen 86 percent this year.
Jilin Yatai gained 0.67 yuan, or 3.1 percent, to 22.59 yuan. First-half net income probably jumped as much as 800 percent from 34 million yuan a year ago, because profit at its unit Northeast Securities Co rose ``substantially,'' the company said.
Industrial Bank Co, part-owned by a unit of HSBC Holdings Plc, added 0.05 yuan, or 0.1 percent, to 37.99 yuan. The lender said today profit probably rose more than 90 percent from a year earlier as revenue increased and it improved cost controls.
Minsheng Banking, the nation's only privately controlled lender, lost 0.08 yuan, or 0.7 percent, to 12.14 yuan, snapping a five-day, 9.7 percent advance. Shanghai Pudong Development Bank Co, the Chinese partner of Citigroup Inc., fell 0.86 yuan, or 2.3 percent, to 36.44. The shares gained 11 percent over the past five days.
China Merchants Bank Co, the nation's seventh-largest lender, fell 0.34 yuan, or 1.2 percent, to 27.35 yuan. The stock advanced 14 percent in the previous five days.
``Banks fell today on obvious profit-taking as they have gained a lot recently.'' said Sun Cheng, who manages the equivalent of US$400 million with Pacific Asset Management Co in Shanghai.
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