Bloomberg News

China Stocks: China Life, Huaneng Power, Ping An, SAIC Motor

June 13, 2012

Shares of the following companies had unusual moves in China trading. Stock symbols are in parentheses as of the close.

The Shanghai Composite Index (SHCOMP), which tracks the bigger of China’s stock exchanges, rose 29.13 points, or 1.3 percent, to 2,318.92. The CSI 300 Index (SHSZ300) gained 1.6 percent to 2,580.64.

Automakers: SAIC Motor Co. (600104) (600104 CH), China’s largest carmaker, gained 1.9 percent to 14.93 yuan. Great Wall Motor Co. (601663 CH), China’s biggest pickup truck maker, rose 3.7 percent to 17.73 yuan.

The Ministry of Finance announced trade-in subsidies for the replacement of some commercial vehicles, with as much as 18,000 yuan ($2,825) offered.

Power stocks: Huaneng Power International Inc. (600011) (600011 CH), the listed unit of China’s largest power group, jumped 5.7 percent to 6.26 yuan. Datang International Power Generation Co. (601991 CH), a unit of China’s second-biggest electricity producer, surged 7.8 percent to 5.78 yuan. Huadian Power International Corp. (600027) (600027 CH), the listed unit of China’s fourth-largest power producer, gained 7.3 percent to 3.82 yuan.

Sanford C. Bernstein cut the 2012 average price forecast for coal by 2 percent to 735 yuan a metric and the 2013 price estimate by 1.5 percent to 665 yuan a ton, citing rising coal production, higher inventories, “weak” power consumption, lack of fiscal stimulus and cheaper imports. Chinese power producers rely on coal to generate three-quarters of the nation’s electricity.

Insurance stocks: China Life Insurance Co. (601628) (601628 CH), the nation’s biggest insurer, jumped 7.2 percent to 17.88 yuan. Ping An Insurance Group Co. (2318) (601318 CH), the second largest, climbed 6.5 percent to 45.28 yuan. New China Life Insurance Co. (601336) (601336 CH), the third biggest, surged by the 10 percent daily limit, to 34.49 yuan.

The China Securities Journal reported a plan by regulators to ease infrastructure investments. The government may allow insurers to invest in stock index futures, bond futures and overseas depository receipts, the Shanghai Securities News reported yesterday, citing an unidentified person. These changes may boost insurers’ investment returns while meeting their requirements to maintain long-term asset allocations, said Xie Jiyong, an analyst at Capital Securities Corp. in Shanghai, in a phone interview today.

--Zhang Shidong. Editor: Allen Wan

To contact Bloomberg News staff for this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net


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