China Stock Watch 27/12/13

As I predicted yesterday, with the important 2000 barrier of the Shanghai Composite Index coming into view, Chinese stocks generally rose today. How much this can be attributed to market fundamentals and how much down to government instruction is impossible to say: there is never any written instruction. All the same, certain patterns of behaviour can be established, recognised and therefore predicted. Stocks tend to rise in the run-up to important political sessions, or when important barriers are in risk of being breached, for instance. All major mainland corporations have a “red telephone” which connects their executives to the party leadership, and you’d better take that call when it comes if you know what’s good for you. See Richard McGregor’s book The Party for details on the hardwiring of the political apparatus into the economic landscape.

On the day, then, fifteen stocks rose, with a goodly number of them by over 1%. SAIC Motor led the pack, rising 3.59% to RMB13.86, while China Life Insurance and Ping An Insurance were not far behind, gaining 2.7% and 3.21% respectively. The suspicion that these gains are not driven by market sentiment seems confirmed when SAIC Motor‘s rise was on the same day that it announced one of the biggest recalls in history, of 1.46 million Buick and Chevrolet models due to fuel pump safety issues. Dongfeng Motor had the largest fall, declining sharply to HK$12.10 (-4.57%).

Name Price Change Mkt cap 52wk high 52wk low EPS P/E
Sinopec 4.48 0.00 (0.00%) 522,212M 7.03 4.05 CN¥0.62 7.28
PetroChina 7.71 +0.01 (0.13%) 1.41B 9.5 7.08 CN¥0.68 11.41
ICBC 3.58 +0.03 (0.85%) 1.26B 4.53 3.4 CN¥0.74 4.87
China Construction Bank 4.14 +0.06 (1.47%) 1.04B 5.19 3.8 CN¥0.85 4.89
Agricultural Bank 2.46 +0.02 (0.82%) 798,994M 3.28 2.38 CN¥0.50 4.9
Bank of China 2.66 +0.03 (1.14%) 742,535M 3.26 2.48 CN¥0.53 5.01
China Mobile 80.85* -0.10 (-0.12%) 1.63B 91.8 74.9 HK$8.17 9.89
Noble Group 1.06 +0.01 (1.44%) 7,025M 1.27 0.785 SGD0.04 29.23
China State Construction 3.13 +0.04 (1.29%) 93,900M 4.18 2.9 CN¥0.62 5.08
CNOOC 14.30* -0.04 (-0.28%) 638,459M 17.38 12.04 HK$1.89 7.58
China Railway Construction 4.63 +0.05 (1.09%) 57,123M 6.49 3.95 CN¥0.84 5.5
China Railway Group 2.65 +0.04 (1.53%) 56,445M 3.41 2.3 CN¥0.44 6.04
SAIC Motor 13.86 +0.48 (3.59%) 152,814M 19 11.83 CN¥2.05 6.76
China Life Insurance 15.2 +0.40 (2.70%) 429,624M 22.7 12.88 CN¥0.97 15.72
Dongfeng Motor 12.10* -0.58 (-4.57%) 104,255M 13.28 9.48 HK$1.37 8.82
China Shenhua 15.7 +0.13 (0.83%) 312,267M 25.7 15.36 CN¥2.25 6.97
Ping An Insurance 40.85 +1.27 (3.21%) 323,374M 53.27 31.69 CN¥3.45 11.84
China Telecom 3.89* 0.00 (0.00%) 314,827M 4.46 3.48 HK$0.26 15.1
China Communications Construction 4.03 +0.06 (1.51%) 65,184M 5.79 3.8 CN¥0.81 4.98
Bank of Communications 3.89 +0.04 (1.04%) 288,882M 5.68 3.65 CN¥0.84 4.62

 

Week’s Movers

After the bloodbath of the past two weeks, it will come as a relief that some stocks actually showed a gain over the week. Insurers China Life and Ping An did the best, gaining 3.4% and 3.37% respectively. For the fallers, Dongfeng Motor performed the worst, declining 2.89%; Sinopec was not far behind, going down 2.61%. fallers risers

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s