China-Asia Stocks

[million]

China A-shares end morning mixed; Olympics-related stocks soar -UPDATE
January 01, 2008: 11:29 PM EST

Jan. 1, 2008 (Thomson Financial delivered by Newstex) --

SHANGHAI (XFN-ASIA) - China A-shares finished the morning mixed, with investors picking up small caps in the retail and food sectors amid hopes that this summer's Beijing Olympic Games will boost their revenues, dealers said.

However, weakness in heavyweights such as PetroChina and Sinopec (NYSE:SNP) dragged down major indexes.

The benchmark Shanghai Composite Index ended the morning down 0.68 point or 0.01 pct at 5,260.89.

'Gainers outnumbered decliners. However, indices were dragged down by heavyweights amid worries that their profit growth would slow down due to monetary tightening,' said Chen Huiqin, an analyst at Huatai Securities.

'Market volatility is likely to increase this year. But we expect it has a large chance to rise in the first quarter... with defensives such as retail and food stocks expected to have an opportunity to beat the market,' he said
The Shanghai Composite Index gained nearly 97 pct in 2007.

Among gainers today, China Garments Co Ltd (SZA 000902) rose its10 pct daily limit to 8.44 yuan, while Beijing Yanjing Brewery Co Ltd (SZA 000729) rose 10 pct to 23.16.

Beijing Jingxi Tourism Development Co Ltd (SZA 000802) gained 10 pct to 26.69 while China Quanjude(Group) Co Ltd (SZA 002186), a Beijing-based roast duck restaurant, soared 10 pct to 5.90.

Inner Mongolia Group Co Ltd (SHA 600887), a major dairy producer and sponsor of Beijing Olympics, rose 2.12 yuan to 31.45.

Air China Ltd (SHA 601111) jumped 1.96 yuan to 29.40 after its parent China National Aviation Corporation said Singapore Airlines (OOTC:SINGF) and Temasek' 3.80 hkd a share offer for China Eastern Airlines stake 'does not reflect the fair value' of China Eastern.

China Eastern Airlines (SHA 600115; HK 0670; NYSE CEA) rose 0.60 yuan to 21.89.

China Shipping Development Co Ltd (SHA 600026; HK 1138) advanced 1.14 yuan to 38.16 after signing 6 bln yuan worth of cargo vessel contracts.

Petrochina Co Ltd (SHA 601857) lost 0.42 yuan to 30.54, and China Petroleum & Chemical Corp (Sinopec)(SHA 600028; HK 0386; NYSE SNP) shed 0.33 yuan to 23.10.

Industrial and Commercial Bank of China (OOTC:IDCBF) (ICBC)(SHA 601398; HK 1398) fell 0.06 yuan to 8.07, while Ping An Insurance (Group) Co of China Ltd (SHA 601318; HK 2318) dropped 3.02 yuan to 103.08.

The Shanghai A-share Index fell 0.78 point to 5,520.71, while the Shenzhen A-share Index rose 8.14 points to 1,539.13.

The FTSE/Xinhua China A 50 Index was down 52.56 points at 20,392.33 and the FTSE/Xinhua China A 200 Index was up 52.63 points at 15,123.35.


(1 usd = 7.3 yuan)
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