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Market:Shanghai Hong Kong
Sector:Financial Services
EPIC:CHINA
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Chinese markets surge on news of state support for new economic zone

Tuesday, May 05, 2009 by Proactiveinvestors
Chinese markets surge on news of state support for new economic zone

Chinese markets advanced again as the state council announced support for the continued development of a cross-straits economic zone.


The Shanghai Comprehensive Index advanced 0.29 percent to 2557.34, the highest since August 8. The SME Comprehensive Index rose 0.89 percent to 4124.65.


The Hang Seng Index added 0.30 percent to 16430.08. The Hang Seng Growth Enterprises Index rose 1.47 percent to 437.3. The Hang Seng China Enterprise Index slid 0.41 percent to 9602.08.
Taiwan's TAIEX Index advanced 0.78 percent to 6379.94.


Shanghai Pharmaceutical Co. (SH:600849), producer of Tamiflu, dropped 4.58 percent after having gained 34 percent in the previous five trading days.


Qingdao Doublestar Co. (SZ:000599), a shoe and tyremaker, rose 6.67 today. Its shares has gained 36 percent in the latest 5 trading days thanks to its tyre business, which benefitted from the country’s auto stimulus plans.


Blueprint for cross-straits economic zone boosts markets


Chinese markets advanced again as the state council announced support for the continued development of a cross-straits economic zone.


Taiwan's TAIEX Index advanced 0.78 percent to 6379.94. The Shanghai Comprehensive Index advanced 0.29 percent to 2557.34, the highest since August 8. The SME Comprehensive Index rose 0.89 percent to 4124.65. The Hang Seng Index added 0.30 percent to 16430.08. The Hang Seng Growth Enterprises Index rose 1.47 percent to 437.3. The Hang Seng China Enterprises Index slid 0.41 percent to 9602.08.


The State Council yesterday released a document supporting the development of an economic zone on the western side of the Taiwan Straits. The province of Fujian will act as the hub of the economic zone, which will face Taiwan across the Straits and connect with the Pearl River Delta and the Yangtze River Delta, two economic powerhouses on the mainland.


Fujian province's geographic proximity to Taiwan, ancestral origin, languages and traditions. Fujian has attracted more than US$20 billion in investment from the island since the 1980s, when investors from Taiwan started to open businesses on the mainland.


The provincial government raised the plan to build an economic zone on the western side of the Straits as early as 2004.


Fujian companies rose on the news. Fujian Sanmu Group Co.（SZ:000632, Fujian Zhangzhou Development Co. (SZ:000753), China Wuyi Co.(SZ:000797), Fujian Cement Inc。（SH:600802） and Fujian Expressway Develoment Co. （SH:600033）surged to the 10 percent trading cap.

Xiamen ITG Group Co.,（SH:600755）advanced 6.55 percent。Xiamen International Port Co.（SZ:000905） added 5.55 percent.


On the Hong Kong stock exchange, Fujian Holdings （HK:0181）surged 38 percent，Xiamen International Port Co. （HK:3378）surged 21.88 percent，Chaoda Modern Agriculture （HK:0682）added 7.48 percent.

Windpower to overtake nuclear in China by 2020


China may have 100 GW of wind power capacity by 2020, more than three times the 30 GW the government set as a target 18 months ago, Shanghai Securities reported today.


That would mean wind would be a far larger producer of electricity than solar technologies and even bigger than nuclear power, despite a construction boom in nuclear power plants.


Jiangsu Miracle Logistics System Engineering Co. (SZ:002009), a manufacturer of wind blades, surged to the 10 percent trading cap. Xinjiang Goldwind Science & Technology Co. (SZ:002202), a leading producer of wind power generators, added 5.04 percent.


China Windpower Group (HK:0182), a wind power station operator, climbed 7.94 percent.


China will become the biggest growth market for wind power generating capacity this year, according to the Global Wind Energy Council (GWEC)


China is currently the fourth largest producer of wind power after the United States, Germany and Spain.

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