China markets rose led by metals, driving the benchmark indices to their highest level of this year, as the Chinese government determinedly spends to meet its growth targets.
The Shanghai Comprehensive Index climbed 0.9 percent to 2676.68, the highest in 9 months. The SME Comprehensive Index advanced 0.76 percent to 4222.73.
The Hang Seng Index rose 3.06 percent to 17544.031, the highest in seven months. The Hang Seng Growth Enterprises Index advanced 0.45 percent to 509.18. The Hang Seng China Enterprise Index added 2.86 percent to 10072.51.
Taiwan's TAIEX Index climbed 1.18 percent to 6655.59.
HSBC (HK:0005) jumped 6.3 percent while Hong Kong-based Bank of East Asia (HK:0023) climbed 5.6 percent. Chinese regulators approved the sale of yuan bonds by both banks in a move to help expand the nation's capital markets.
Metals
Shanghai copper futures surged to the 5 percent daily trading cap while aluminum futures advanced 1.32 percent.
Jiangxi Copper (SH:600362;HK:), the biggest Chinese producer of the metal by market value, jumped 10 percent on Shanghai trading and 7.87 percent on Hong Kong trading.
Aluminum Corporation of China (SH:601600;HK:2600) added 4.85 percent on Shanghai and 7.59 percent on Hong Kong.
The remaining mainland-listed copper and aluminum shares surged to the 10 percent trading cap, including Yunnan Copper Industry Co. (SZ:000878), Tongling Nonferrous Metals Group Co.(SZ:00630), Anhui Jingcheng Copper Share Co. (SZ:002171), Shanxi Guanlu Co.(SZ:000831), Yunnan Aluminium Co.(SZ:000807) and Jiangsu Alcha Aluminum Co. (SZ:002160).
China to subsidise car and household appliance trade-ins
IN the latest creative economy-boosting measure China today announced it is to subsidise consumers who wish to upgrade their cars and home appliances.
Beijing hopes the move will both spur domestic consumption and curb pollution as consumers swap old for new.
Subsidies for the replacement of automobiles will be increased to RMB 5 billion from the 1 billion announced in January. The government will also float RMB 2 billion to subsidize the replacement of home appliances.
People purchasing new televisions and four other kinds of home appliances will get a 10 percent discount, courtesy of the government if they trade in their old models. Trials are soon to start in four provinces.
Sichuan Changhong Electric Co.(SH:600839), China's second-largest television maker, advanced 1.48 percent. Skyworth Digital Holdings (HK:0751), another television maker, advanced 4.49 percent.
Power
China's power consumption dropped 3.9 percent year on year in the first 10 days of May, despite a recorded increase in industrial output.
GD Power Development Co. (SH:600795), the largest electricity producer in northeastern China, declined 1.36 percent. Huaneng Power International (SH:600011, HK:0902), the listed unit of China’s largest power group, declined 0.39 percent on Shanghai but advanced 0.80 percent on Hong Kong.
Jilin Power Share Co.(SZ:000875), a thermal power plant operator, surged 7.5 percent. The company plans to raise as much as 2.07 billion yuan from the sale of up to 550 million shares through a placement. The proceeds will be used to fund power projects, the company said in a statement yesterday.