| Banks, automakers boost mainland's stocks |
SHANGHAI, Jan. 22 -- Key stock index surged on the Chinese mainland by the most in a week, led by China Merchants Bank Co after the banking regulator said the financial health of the country's major banks had improved.
"The regulator gave an overall positive assessment to the banks' management, which boosted investors' confidence,'' said Yan Ji, analyst at Haitong Securities Co in Shanghai.
Shanghai Automotive Co led gains by automakers on a report of higher car sales expected in China this year.
The Shanghai Composite Index, which tracks the bigger of the mainland's stock exchanges, rose 3.6 percent to a record 2933.19. The Shenzhen Composite Index climbed 4.2 percent to 700.20.
The Shanghai and Shenzhen 300 Index, which tracks yuan-denominated A shares listed on the mainland's two exchanges, advanced 95.22, or four percent, to close at a record 2491.31. The index had surged 21 percent in the last three weeks.
China Merchants Bank Co, the most profitable among the mainland's listed banks, gained 1.05 yuan (13.44 US cents), or 6.4 percent, to 17.53 yuan. Industrial & Commercial Bank of China, the nation's biggest, advanced 0.17 yuan, or 3.2 percent, to 5.48 yuan. China Minsheng Banking Corp, the mainland's first privately owned lender, added 0.23 yuan, or 2.3 percent, to 10.37 yuan.
"The growth in lending was stable and reasonable,'' said Liu Mingkang, director of China Banking Regulatory Commission, on Saturday. Non-performing loans held by the country's commercial banks decreased by 1.38 percent in 2006 from a year earlier, he said.
Shanghai Automotive Co, the listed unit of China's largest carmaker, jumped 0.24 yuan, or 2.2 percent, to 11.01 yuan. FAW Car Co, a partner of Toyota Motor Corp and Volkswagen AG, gained 0.54 yuan, or the 10 percent limit, to 5.90 yuan.
Dongfeng Automobile Co, the Shanghai-listed arm of China's third-biggest automaker, added 0.17 yuan, or 3.8 percent, to 4.62 yuan. Separately, the company's parent said Volvo AB may replace Nissan Motor Co as its large commercial vehicle partner after the Swedish company bought Nissan's stake in a truckmaking affiliate.
Tianjin FAW Xiali Automobile Co, a Chinese partner of Toyota Motor Corp, jumped 0.96 yuan, or the 10 percent limit, to 10.52 yuan, after it said its joint-venture with Toyota Motor Corp sold 55 percent more vehicles last year, on increasing demand for its Vios and Corolla cars.
China's car sales this year are expected to rise by 15 percent from a year ago, state-owned Xinhua News Agency reported, citing the China Association of Automobile Manufacturers.
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