A Shares Wrap: Markets Rise, Led By Real Estate, Financials

The Shanghai Composite Index gained 16.06 points or 0.53% to close at 3069.29 points, with turnover of 108.8 billion yuan. The Shenzhen Component Index advanced 68.44 points or 0.56% to end at 12,506 points, with turnover of 79.48 billion yuan.

Heavily-weighted stocks, including real estate, coal, insurance and banks stocks lead gainers while port operators, agriculture stocks, Tibet-concept stocks lead decliners. A total of 12 stocks on the Shanghai and Shenzhen bourses rose by the daily limit. Telecom equipment maker Shanghai Potevio (600680, 14.99, +9.98%) rose by the daily limit for the third straight day. Shanghai Pharmaceutical (601607, 12.60, +9.98%), which resumed trading after completing reorganization through a share swap, and Sichuan Joint-Wit Medical & Pharmaceutical Industry (000809, 22.77, +10%), which rose on China's plans for public hospital reform, also rose by the daily maximum.

Real estate stocks performed well Ministry of Housing and Urban-Rural Development head Jiang Weixin said on March 8 that China’s housing prices will rise for the next 20 years due to continuing urbanization, industrialization and limited land supply. Rongfeng Holding Group (000668, 15.09, +9.99%), COSMOS Group (002133, 9.57, +10%), Guangzhou Pearl River Industrial Development (600648, 12.96, +10.02%), and Winsan (Shanghai) Industrial (600767, 7.35, +10.03%) all rose by the daily limit. Real estate giants China Vanke (000002, 9.62, +2.45%), Poly Real Estate (600048, 20.28,+4.37%) and Gemdale (600383, 13.77, +6.91%) also rose.

China Life Insurance (601628, 28.09, +3.27%) projects 2009 full year net profit tripled from 2008 due to a change in accounting rules, which drove up insurance and bank stocks, including Ping An Insurance (601318, 47.05, +1.93%), China Pacific Insurance (601601, 25.27, +1.24%) and CITIC Bank (601998, 7.13, +3.33%).

Coal stocks rallied in afternoon trading, stimulated by recent stability in coal prices after declines in late February and lower coal inventory in east China. Zhengzhou Coal Industry and Electric Power (600121, 12.43, +10%) rose by the daily limit. Huolinhe Opencut Coal Industry (002128, 25.45, +6.09%), Gansu Jingyuan Coal Industry and Electricity Power (000552, 16.9, +3.36%), Sichuan Shengda Industrial (000835, 10.34, +5.81%) all performed well.

Chang’an Automobile (000625, 13.26, +4.91%) was the largest gainer among auto stocks after it announced 2009 net profit rose 43-fold year-on-year. Stimulated by the news, automobile-related stocks Double Coil Holdings (600623, 17.72, +5.16%), Ningbo Huaxiang Electronic (002048, 14.16, +2.76%) and Zhejiang Asia-Pacific Mechanical and Electronic (002284, 42.90, +2.36%) rose.

Nearly half of the stocks on the ChiNext market rose. Hebi Dinglong Chemical (300054, 48.31, +10%), Shenzhen Sunwin Intelligent (300044, 30.93, +6.80%) and Xiamen 35.com Technology Co. Ltd (300051, 43.8, +8.34%) were among the largest gainers.