By Zhang Shidong
Jan. 6 (Bloomberg) -- China’s benchmark stock index rose for a second day, led by financial and energy companies, after Shanghai Pudong Development Bank Co. said profit more than doubled and crude oil prices traded close to a one-month high.
Pudong Bank, the Chinese partner of Citigroup Inc., gained 5.5 percent. Pingdingshan Tianan Coal Mining Co., the listed unit of China’s fifth-largest producer of the fuel, advanced by the 10 percent daily limit. Sany Heavy Industry Co. and Xuzhou Construction Machinery Science & Technology Co. also jumped 10 percent on the expectation machinery makers will resume normal production next month after running down inventories.
“We shouldn’t be too pessimistic in 2009; lots of bad news has already been priced into stocks,” said Wang Zheng, a fund manager at Jingxi Investment Management Co. in Shanghai. “Recoveries of the economy and cyclical stocks are supposed to be the major investment themes this year.”
The CSI 300 Index, which tracks yuan-denominated A shares listed on China’s two exchanges, gained 59.84, or 3.2 percent, to 1,942.80 at the close. Only eight stocks fell on the measure comprised of 300 companies. It jumped 6.9 percent in the first two trading days of 2009, the best start to a year since the gauge was introduced in April 2005.
To contact the reporter on this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net
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