(Oct. 15, 2009 - Chinavestor) China shares climbed in Hong Kong and Shanghai, fueled by the DJIA breaking through the 10,000 level and by strong profit growth of Chinese brokerages. The latest IPO in Shanghai, China International Travel Service Corp., attracted large amount of funds rising 43% the first day of trading. Another positive development from China is the fast pace of residential property price increase, another sign of robust economic activity in China. Home prices rose the fastest this year in September while the number of residential properties sold jumped 74% from a year ago, according to information released on the website of the National Statistics Bureau.
Chinese oil companies such as Petrochina (HKG:0857) (NYSE:PTR) continued to do well in Hong Kong but index heavy weight China Mobile (HKG:0941) (NYSE:CHL) fell, dragging the telecom sector lower. Shares of China Unicom (HKG:0762) (NYSE:CHU) shed 1.3% in Hong Kong. China Life Insurance (HKG:2628) (NYSE:LFC) and Aluminum Corp. of China (HKG:2600) (NYSE:ACH) underperformed as well, raising a red flag before the NYSE Bell.
With strong gains in the Chinese residential property market, expect the Claymore/AS China Real Estate ETF (NYSE:TAO) to do well in the upcoming days.
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