China shares outperform Asian markets
24 Dec 2012
Shares of companies in Mainland China outperformed other Asian markets today, helped by strength in financials following reports in the state-run media of additional fund allocation by the country's social security funds and higher expectations of additional investment in the sector.
The CSI300 of the top Shanghai and Shenzhen listings was up 0.7 per cent at midday trading recess even as the Shanghai Composite Index rose 0.5 per cent.
Strength in A-shares lifted Hong Kong, which shut at midday for the Christmas holiday and would resume trading only on Thursday. The Hang Seng Index rose 0.2 per cent while the China Enterprises Index gained 0.4 per cent.
According to analysts, people expect money to roll into Chinese banking and other financial A-shares, which was the first sector people generally expected government-related funds to look at.
According to the official China Securities Journal said the National Social Security Fund had distributed funds to fund managers who had successfully applied to manage the increased fund allocation.
According to the report, the Guangdong provincial social security authority had completed allocation of 100 billion yuan for investment over the last three months.
China Merchants Bank was among the top boosts to the CSI300, rising 3.9 per cent to its highest since May.