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Chinese shares advanced for the sixth straight day on Monday, with nonferrous metal stocks rising across the board on media reports that China would cap nonferrous metal production over the next five years.
The benchmark Shanghai Composite Index gained 0.65 percent, or 16.66 points, to end at 2,588.68 points.
The Shenzhen Stock Index climbed 0.6 percent, or 63.18 points, to 10,591.13 points.
Total turnover shrank to 168.33 billion yuan (25.12 billion U.S. dollars) from 184.29 billion yuan on the previous trading day.
Gainers outnumbered losers by 730 to 113 in Shanghai and 769 to 182 in Shenzhen.
The country plans to limit its combined output of 10 nonferrous metals, including copper, lead and aluminum, to 41 million tonnes per year by 2015, said Shang Fushan, deputy head of the China Nonferrous Metals Industry Association, last Friday.
The move is part of China's larger push to consolidate the fragmented nonferrous metal industry and eliminate outdated capacity.
Boosted by the news, Aluminum Corp. of China, the country's biggest producer of aluminum, jumped 6.38 percent to 10.17 yuan per share while Shandong Nanshan Aluminum Co. rose 2.97 percent to 9 yuan per share.
Shares of railway builders also posted gains Monday on speculation that China would double its investment in railway construction in the second half of the year to 55.2 billion yuan (8.2 billion U.S. dollars.)
China Railway Construction Corp. climbed 1.99 percent to 7.69 yuan per share while China Railway No.2 Engineering Group Co. gained 0.21 percent to 9.7 yuan per share.
Go News Center Added by: Betty Add time: 2010/7/27 9:27:22 view >>
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