Chinese shares start 2009 with big rise

The benchmark Shanghai Composite Index gained 59.84 points, or 3.29 percent, to 1,880.72. The Shenzhen Component Index rose 149.37 points, or 2.30 percent, to 6,634.88.

Combined turnover was 70.675 billion yuan (US$10.33 billion), much higher than the 55 billion yuan for the last trading day of 2008. Gains outnumbered losses by 846 to 30 in Shanghai and 730 to 23 in Shenzhen.

The upward trend was led by cement, steel and some telecommunications sectors.

Cement and steel shares performed in a brisk manner, as demand is expected to increase after the government economic stimulus package gave priority to infrastructure construction projects.

Chaodong Holdings, Jidong Cement and Qilianshan rose by the 10-percent daily limit to 4.48 yuan, 10.89 yuan and 7.58 yuan, respectively. Hailuo Cement, Saima Industrial and Tapai Group soared 9.99 percent, 9.98 percent and 9.97 percent, respectively, to 28.52 yuan, 18.85 yuan and 8.16 yuan. Taihang Cement went up 8.74 percent to 5.60 yuan, Fujian Cement up 8.67 percent to 4.26 yuan and Huaxin Cement up 8.37 percent to 16.05 yuan.

Baosteel gained 7.54 percent to 4.99 yuan, Anshan Steel rose 8.20 percent to 7.52 yuan, Laisteel Holdings went up 7.89 percent to 6.29 yuan and Baotou Steel up 6.30 percent to 2.70 yuan.

Most of 3G (Third-generation)-related shares gained ground after the State Council approved the licensing scheme for 3G telecom operators last week.

For example, Jinma Group soared 9.90 percent to 5.66 yuan, Dongxin Peace went up 7.88 percent to 6.98 yuan and New Continent up 5.45 percent to 3.48 yuan.

Chongqing-related shares were buoyed up by the State Council's decision to build the city into an economic hub for the upper stream of the Yangtze River and a metropolis that integrates urban districts and rural areas.

Chongqing Steel and Chongqing Gangjiu rose by the 10-percent daily limit to 3.80 yuan and 6.12 yuan respectively. Chongqing Road & Bridge and Chongqing Development soared 9.95 percent and 9.94 percent, respectively, to 6.08 yuan and 5.75 yuan.