GE China bank deal lifts China shares
Fri Oct 21, 2005
SHANGHAI, Oct 21 (Reuters) - China's shares edged up 0.47 percent on Friday as investors chased banking stocks on news that General Electric (GE.N: Quote, Profile, Research) would make its first investment in China's banking sector.
GE's consumer finance unit said it had agreed to acquire newly issued shares in Shenzhen Development Bank (000001.SZ: Quote, Profile, Research) for $100 million and would become its strategic partner to develop consumer finance services in China.
"That helped lift up investors' confidence and push up the market," said Liu Xiaochang, an analyst with Huatai Securities.
The benchmark Shanghai composite index closed at 1,141.318 points, slightly extending a 0.45 percent rise at the midday break.
Shenzhen Bank surged by its daily limit to 6.34 yuan while larger rival Huaxia Bank (600015.SS: Quote, Profile, Research) gained 1.61 percent to 4.42 yuan.
Merchants Bank (600036.SS: Quote, Profile, Research), the largest domestically listed lender, closed up 0.47 percent at 6.45 yuan.
Bucking the trend, the mainland's top steel firm, Baoshan Iron and Steel Co. Ltd. (600019.SS: Quote, Profile, Research), slid 0.5 percent to 4.02 yuan.
The benchmark index has dived nearly 10 percent so far this year, depressed by factors such as Beijing's controversial programme -- revived in April -- to float $250 billion in non-traded state holdings in listed companies.
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