China's stock indexes rose, advancing for a third week. China Vanke Co. and COFCO Property (Group) Co. climbed after the two developers successfully bid for a plot of land in the southern city of Guangzhou.
``It's a sign that the real estate industry is still in good shape,'' said Lu Yizhen, who oversees the equivalent of $375 million at Citic-Prudential Fund Management Co. in Shanghai. ``If there is no profit to make, they won't buy the land.''
Gold producers such as Zhongjin Gold Corp. declined on concern lower prices of the metal will erode profits.
The Shanghai Composite Index, which tracks yuan-denominated A shares and foreign-currency B shares, added 6.79, or 0.4 percent, to 1667.98 at the 3 p.m. local-time close. The Shenzhen Composite Index, which tracks the smaller of the two Chinese markets, rose 0.48, or 0.1 percent, to 417.70.
For the week, the Shanghai index climbed 1.9 percent and the Shenzhen index gained 0.5 percent.
China Vanke, the nation's biggest publicly traded property developer, rose 0.07 yuan, or 1 percent, to 6.78. COFCO Property, the listed unit of China National Cereals, Oils & Foodstuffs Corp., the country's largest grain trader, advanced 0.25 yuan, or 3.2 percent, to 8.15.
The two companies jointly bought a piece of land for 1.75 billion yuan ($220 million) in Guangzhou to build apartments, they said in separate statements to the Shenzhen Stock Exchange. Vanke and COFCO Property will each own 50 percent of the 1.56 million square foot site, according to the statements.
Zhongjin Gold, China's largest publicly traded gold miner by market value, fell 0.70 yuan, or 3.4 percent, to 20.12. Shandong Gold Mining Co., the second-largest China-listed gold producer, lost 1.08 yuan, or 3.6 percent, to 29.26.
Gold futures yesterday slid 2.6 percent to $624.90 an ounce in New York, the biggest percentage drop since July 18, as the dollar strengthened against the euro, reducing the appeal of precious metals as an alternative investment.
``There is no way that metals shares can avoid some profit- taking, as both prices of the stocks and futures are now at high levels,'' said Citic-Prudential Fund Management's Lu.
Elsewhere, China Merchants Bank Co., the nation's second- biggest publicly traded lender, added 0.14 yuan, or 1.6 percent, to 8.89. China Merchants will seek acquisition opportunities to strengthen market share in the world's fastest-growing economy, Qin Xiao, chairman of China Merchants, said yesterday.
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