China stocks surged, led by nonferrous metals, property and auto shares, it what has been the biggest weekly gain in almost three months. No stock declined and over 100 shares surged by their daily trading cap. The Shanghai Comprehensive Index rose 3.97 percent to 2181.24.
Non-ferrous metals shares advanced 7.17 percent on average. Jiangxi Copper (600362,SH;00358,HK), China's second largest producer of the metal, surged by 9.97 percent Shanghai trading. Yunnan Luoping Zinc and Electricity Co.(002114,SZ), a Zinc producer with its own hydropower station, also advanced by 10 percent limit.
Property and bank shares gained momentum in the afternoon session of today's trading on speculation of further interest rate cuts. Properties advanced 6.32 percent on average.
China Vanke Co.(000002,SZ), the country's largest publicly traded real-estate developer, rose 7.71 percent. Poly Real Estate Group Co. (600048), the second-largest, climbed 8.09 percent.
Bank of China (601988,SH; 03988,HK) rose 4.45 percent on Shanghai trading. Industrial and Commercial Bank of China (601398,SH; 00398,HK) climbed 4.58 percent on Hong Kong trading.
The Hang Seng Index rose 3.61 percent to 13655.04. Geely Automobile (00175, HK), China's largest privately-owned carmaker, surged 16.67 percent. Guangzhou R&F Properties (02777,HK), a mainland Chinese real estate developer, climbed 14.24 percent.
Zhejiang Leo Co.(002131,SZ), an irrigation equipment manufacturer, surged 10 percent today, ending the week with a 32 percent gain. China raised the drought emergency alert to the highest level on Thursday.
New Sea Union share price rockets as Shenzhen growth enterprise board looks certain
The final version of management regulations for the Shenzhen Stock Exchange's growth enterprise board was submitted to the state council on Wednesday, sending companies with stakes in venture capital firms soaring.
New Sea Union Telecoms Development Co. (002089, SZ) surged 47.6 percent this week. The company has a 12 percent stake in Suzhou Yuanfeng Venture Investment Company, and 5 percent stake of in Shanghai New Margin Ventures Co.
Drafts of the regulation were released in March 2008 to solicit public opinions. The Board was originally to be launched last year but was put on hold after the main board dropped 65.4 percent. It's now likely that the government will discuss and approve the document before March.
By the end of 2008, the plan was brought back into play as small and medium-sized enterprises (SMEs) were in urgent of capital.
Shang Fulin, chairman of China Securities Regulatory Commission (CSRC), said the grwoth enterprises board could come "at any moment" on December 29, 2008..
As the harvest season for venture capitals approaches, companies with stake in venture capitals become popular.
China overtakes US as world's largest car market
General Motors has estimated that China sold 790,000 vehicles in January, surpassing the United States, where sales tumbled 37 percent from a year ago to 656,976 vehicles.
The leading US automaker further predicts that Chinese auto sales could hit 10.7 million vehicles this year, nearly a million units more than its estimate of 9.8 million for the same period in the US.
Although auto sales have slowed in recent months, China remains the world's only major auto market with strong potential given strong domestic demand and recent government policies.
The government passed a stimulus package for the auto sector last month, reducing the purchase tax on vehicles with engine capacity of less than 1.6 litres by half, to 5 percent.
It is also spending RMB 5 billion on subsidies to rural residents who trade in old vehicles for vehicles 1.3 litres or less.
Automobile shares gained 5.90 percent on average. Anhui Jianghuai Automobile Co. (600418,SH), Beiqi Foton Motor Co.(600166,SH) and four other automakers surged to their 10 percent trading caps.