Money

China's stocks rebound; healthcare, consumer companies advance

(Agencies)
Updated: 2010-04-21 17:06

Power Companies

Huaneng Power, the listed unit of China's largest power group, gained 2.9 percent to 7.13 yuan after posting a 41 percent increase in first-quarter profit to 952.8 million yuan on higher demand.

Datang International Power Generation Co, a unit of China's second-biggest electricity producer, surged 10 percent to 8.68 yuan.

The Se Shang Property Index rose 1.1 percent. The gauge has plunged 7.8 percent this week after the government limited loans for third-home purchases, increased down payment requirements and raised mortgage rates. It now trades at 19.8 times reported earnings, the lowest since February 2009, according to data compiled by Bloomberg.

Gemdale, Vanke

Gemdale added 1.5 percent to 11.39 yuan, rebounding from its lowest level since May 2009. China Vanke Co, the nation's biggest listed property developer, rose 0.4 percent to 8.06 yuan, its first gain in six days.

Martin Currie's Chris Ruffle said in an interview this week Chinese real estate stocks are becoming "more attractive" as government measures drove valuations to a year-low and made interest rate increases less likely. China Asset Management Co, the nation's biggest mutual fund company, bought developers in its flagship fund in the first quarter, predicting "gentle" tightening this year, according to the company's website.

Economists are split on the timing of the nation's first interest-rate increase since 2007. Royal Bank of Canada said higher rates are likely this quarter and could come this month, while Bank of America-Merrill Lynch sees no move until the fourth quarter.

China's economy expanded 11.9 percent in the first quarter, the most in almost three years, fanning concern that record lending is creating asset bubbles.

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