| Blue-chip firms spur stocks to another new high |
SHANGHAI, Aug. 9 -- SHANGHAI stocks today reached a new high for the fifth straight day backed by blue-chip companies.
The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, gained 90.93 points, or 1.95 percent, to close at 4,754.10.
The Shenzhen Composite Index, which covers the smaller mainland stock market, gained 20.04 points, or 1.51 percent, to 1,348.88.
Baoshan Iron & Steel Co, the country's biggest steel maker, jumped 7.03 percent to 16.28 yuan (US$2.15) per share and Angang Steel surged 9.74 percent to 29.75 yuan.
Wuhan Iron & Steel Co said its first-half profit almost tripled on higher steel prices and output. Net income rose to 3.4 billion yuan, or 0.44 yuan a share, the company said. Sales rose 38 percent to 26 billion yuan. The trading of China's third-biggest steel maker was suspended today.
The real estate sector also recovered from yesterday's losses.
China Vanke Co, the country's biggest listed developer, surged 9.51 percent to 35.34 yuan and Poly Real Estate Group Co gained 6.97 percent to 77.01 yuan.
Aluminum Corp of China, the nation's biggest producer of the metal, jumped 5.49 percent to 32.66 yuan and Inner Mongolia-based Baotou Aluminum Co gained 2.29 percent to 44.19 yuan. The company said today its shareholders approved the company's takeover by Aluminum Corp of China Ltd.
The 14.7 billion yuan takeover still needs approval from the China Securities Regulatory Commission, it said.
Bank stocks saw mixed fortunes today.
Industrial and Commercial Bank of China rose 2.67 percent to 6.54 yuan and China Merchants Bank rose 5.49 percent to 36.10 yuan.
Bank of China lost 0.51 percent to 5.82 yuan and Bank of Communications lost 0.48 percent to 12.48 yuan.
China Life Insurance Co, the country's top insurer, rose 2.08 percent to 49 yuan and Ping An Insurance (Group) Co rose 7.41 percent to 94.95 yuan.
China's central bank warned yesterday that consumer-price gains may speed up on food and labor costs, fueling speculation that it's five days away from announcing the highest inflation in 10 years.
Economists said July's inflation figure may jump at the fastest pace since February 1997, which may prompt interest-rate increases.
The People's Bank of China has raised rates three times this year and on six occasions ordered lenders to set aside larger reserves. The benchmark one-year lending rate is 6.84 percent.
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