The main news to affect China stocks was the news that local governments will be allowed to roll over debts from infrastructure work not yet producing the necessary revenues to pay off loans. Of course, revenue projections were likely to have been pie-in-the-sky, pluck-a-number-out-the-air – as long as they kept business running. But while this all keeps the show on the road a little longer, refinancing of the LGFVs demonstrates the degree to which access to credit is a political phenomenon. There is also the moral hazard aspect: if politically these projects cannot fail, then what is there to stop reckless borrowing?
A mixed day for the major stocks, then, with nine rising on the day and ten falling. Movement was moderate, with only China State Construction, SAIC Motor, China Shenhua, Ping An Insurance and China Telecom rising or falling by over 1%, and none of them by over 1.5%.
The Shanghai Composite Index closed at 2,109.39, up 11.86 points (+0.57%).
|Name||Price||Change||Mkt cap||52wk high||52wk low||EPS||P/E|
|China Construction Bank||4.1||+0.01 (0.24%)||1.03B||5.19||3.8||CN¥0.85||4.85|
|Agricultural Bank||2.47||+0.01 (0.41%)||802,241.48M||3.28||2.38||CN¥0.50||4.92|
|Bank of China||2.6||-0.01 (-0.38%)||725,786.03M||3.26||2.48||CN¥0.53||4.9|
|China Mobile||80.20*||-0.20 (-0.25%)||1.61B||91.8||74.9||HK$8.19||9.8|
|Noble Group||1.07||-0.00 (-0.47%)||7,057.84M||1.27||0.785||SGD0.04||29.39|
|China State Construction||3.14||+0.04 (1.29%)||94,200.00M||4.18||2.9||CN¥0.62||5.1|
|China Railway Construction||4.66||+0.04 (0.87%)||57,492.94M||6.49||3.95||CN¥0.84||5.53|
|China Railway Group||2.67||+0.02 (0.75%)||56,870.73M||3.41||2.3||CN¥0.44||6.09|
|SAIC Motor||13.85||-0.14 (-1.00%)||152,704.10M||19||11.83||CN¥2.05||6.75|
|China Life Insurance||14.97||-0.01 (-0.07%)||423,122.64M||22.7||12.88||CN¥0.97||15.49|
|Dongfeng Motor||12.02*||-0.12 (-0.99%)||103,565.77M||13.28||9.48||HK$1.37||8.74|
|China Shenhua||15.61||-0.18 (-1.14%)||310,476.97M||25.7||15.36||CN¥2.25||6.93|
|Ping An Insurance||41.29||+0.48 (1.18%)||326,857.51M||53.27||31.69||CN¥3.45||11.97|
|China Telecom||3.87*||-0.05 (-1.28%)||313,208.26M||4.46||3.48||HK$0.26||15|
|China Communications Construction||4.02||0.00 (0.00%)||65,022.44M||5.79||3.8||CN¥0.81||4.97|
|Bank of Communications||3.82||+0.02 (0.53%)||283,683.61M||5.68||3.65||CN¥0.84||4.53|