Shares gained for a fourth day on Monday in falling volume, with the benchmark Shanghai Composite Index edging up 13.22 points, or 0.24 percent, to 5,497.90.

 

Investors have become cautious after recent gains, and they have been unnerved by heavy losses on Wall Street and in Hong Kong, according to Bohai Investment. On Friday, the Dow Jones Industrial Average slid 1.92 percent to 12,606.30 amid recession fears, and on Monday, Hong Kong's benchmark Hang Seng Index fell 1.48 percent to 26,468.13.

 

The Shenzhen Component Index on the smaller Shenzhen Stock Exchange finished up 124.54 points, or 0.65 percent, to 19,141.13.

 

Winner led losers by 580 to 214 in Shanghai and 444 to 152 in Shenzhen. Combined turnover fell to 213.69 billion (29.4 billion U.S. dollars) yuan from 228.55 billion yuan on Friday.

 

Consumer, property and steel stocks led the advance.

 

Consumer stocks gained momentum as Lunar New Year, a time for strong consumer spending, is approaching. Beijing Wangfujing Department Store (Group) Co. jumped 3.75 percent to 50.62 yuan. Suning Appliance Co., the country's second-largest appliance retail chain, climbed 2.23 percent to 71.48 yuan. And Kweichow Moutai Co., China's best-known spirits producer, added 3.75 percent to 224.12 yuan.

 

Most property stocks rose after the central parity rate of the yuan gained 106 basis points to hit a record high of 7.2566 yuan per U.S. dollar on Monday. Shanghai Shimao Co. rose 4.18 percent to 24.66 yuan and Shanghai Lujiazui Finance and Trade Zone Development Co. added 3.94 percent to 26.92 yuan.

 

Steel stocks rose on product price hikes and expectations of a rapid industry consolidation, said analysts. Handan Iron and Steel Co. jumped 6.32 percent to 10.76 yuan.

 

But several large-cap stocks declined, which weighed on the indices.

 

PetroChina, which accounts for about 25 percent of the Shanghai index, fell 0.49 percent to 30.61 yuan.

 

Industrial and Commercial Bank of China slipped 0.12 percent to 8.29 yuan and China Construction Bank fell 0.50 percent to 10.04 yuan.

 

(Xinhua News Agency January 15, 2008)