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China Stocks Rise; Best Performers a Year After Lehman Failure
By resourceINTEL · September 15, 2009 · 11:36 am · Leave a Comment
Sept. 15 (Bloomberg) — China’s stocks rose, led by commodity producers, leaving the Shanghai Composite Index the best performing benchmark measure globally a year after the collapse of Lehman Brothers Holdings Inc.
Yanzhou Coal Mining Co., the listed unit of China’s fourth- biggest coal miner, jumped the daily 10 percent limit after foreign direct investment in the country climbed for the first time in 11 months in August from a year earlier. Jiangxi Copper Co. gained 4.3 percent as metal prices rose. An increase in the nation’s air traffic drove Air China Ltd. 3.8 percent higher.
The benchmark index added 6.99, or 0.2 percent, to 3,033.73 at the close, after swinging between gains and losses at least eight times. The Shanghai index has advanced 46 percent in the past year as a 4 trillion yuan ($586 billion) stimulus package and record lending spurred a rebound in the world’s third- largest economy. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, rose 0.3 percent to 3,302.64.
“The government has taken a lot of measures such as its stimulus packages, which have been an effective remedy to deal with the global financial crisis,” said Xu Lirong, a Shanghai- based fund manager at Franklin Templeton Sealand Fund Management Co., which oversees about $2.56 billion. “It’s no surprise that we are the world’s best performer.”
Today is the one-year anniversary of Lehman’s bankruptcy filing, which exacerbated the credit crunch and helped drag the global economy into its worst slowdown since World War II. Losses from the crisis at the world’s biggest financial institutions since the start of 2007 have climbed to more than $1.6 trillion.
Global Performance
The Shanghai index’s advance in the past year compares with the 7.9 percent advance by the MSCI Emerging Markets Index and a 9.8 percent drop for the MSCI World Index…read more at the Bloomberg
