| Domestic stocks rise to record on investor inflow |
SHANGHAI, June 19 -- DOMESTIC stocks rose for the 10th day. Youngor Group Co gained.
The Shanghai Composite Index, which tracks the bigger of domestic stock exchanges, added 0.4 percent to 4,269.52. The Shenzhen Composite Index, which covers the smaller one, rose 1.4 percent to 1,275.26.
``Liquidity is still strong and that will continue to push shares higher,'' said Yan Ji, an investment manager at HSBC Jintrust Fund Management Co in Shanghai, which manages about US$517 million, Bloomberg reported.
New investors have been piling into the market, with 406,491 new securities accounts opened yesterday and about 250,000 opened daily last week, compared with the quarter's average of some 300,000, official figures show. Commercial banks' deposit rates are capped at the central bank's one-year deposit rate of 3.06 percent, less than the 3.4 percent inflation rate.
Youngor, China's No. 1 maker of men's clothing by sales, jumped 2.95 yuan(38 US cents), or the daily cap of 10 percent, to 32.41 yuan. China United Telecommunications Corp, which controls the nation's second-largest cell phone operator, climbed 0.15 yuan, or 2.5 percent, to 6.15 yuan.
Founder Technology Group Corp, China's second-largest computer maker, surged 1.38 yuan, or the daily cap of 10 percent, to 15.24 yuan. Gezhouba Co, an operator of water conservancy projects, rose 0.37 yuan, or 2.1 percent, to 18.38 yuan.
Equities fell in the morning session on concern new share sales of two commercial banks will divert capital from existing equities.
Bank of Nanjing Co, part-owned by BNP Paribas SA, and Bank of Ningbo Co, a partner of Singapore's Overseas-Chinese Banking Corp., will sell domestic shares for the first time, the China Securities Regulatory Commission said yesterday. The plans will be reviewed by the regulator's listing committee on June 22, it said.
``At this stage, the regulator is more likely to use market-oriented measures to tame the market,'' said Yan of HSBC Jintrust. ``Any radical administrative measure is not likely, because the government also needs a strong market to fund shares sales for state-owned companies.''
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