International Markets

China shares up on better corporate earnings

11/06/09 05:11 EST

SHANGHAI -Chinese shares rose for a sixth day Friday on stronger third-quarter corporate earnings, ending the week up 5.6 percent.

The benchmark Shanghai Composite Index closed up 8.98 points, or 0.3 percent, to close at 3,164.04. The Shenzhen Composite Index for China's smaller second exchange added 0.6 percent to 1,123.82.

"Because most companies reported better-than-expected earnings for the third quarter, investors are looking forward to a profitable next quarter," said Zhang Fan, an analyst for Debon Securities in Shanghai.

Compared with last year's low base due to the global economic crisis, this year's rebound looks even better, Zhang added.

Investors are also betting that economic data due to be released next week will be positive and drive the market higher, analysts said.

Real estate and construction-related shares rose after China Vanke Ltd., the country's biggest developer, reported sales surged 95 percent in October from a year earlier. Vanke rose 2.8 percent to 12.1 yuan, while rival Poly Real Estate Group added 1.4 percent to 26.5 yuan.

Hebei Taihang Cement Co. and Fujian Cement Ltd. both advanced by the daily 10 percent limit — Taihang to 11.19 yuan, and Fujian to 7.45 yuan.

Companies on the southern island of Hainan surged on news reports that the government will outline a plan soon to develop the local tourism industry.

Hainan Expressway Co. soared by the daily limit to 5.48 yuan, while liquor producer Hainan Yedao Group rose 3.7 percent to 16.47 yuan.

In currency markets, the yuan was unchanged from Thursday's close at 6.8275 to the dollar.