China stocks roar in Shanghai, Dec 13

December 13, 2010 （Chinavestor） China stocks caught fire in Asia on Monday as the Central Bank stopped raising interest rates, preferring high growth over low inflation. The Shanghai Composite Index （SHA:000001） surged 81.9 points or 2.8% while the Hang Seng Index （INDEXHANGSENG:.HSI） rose 154.7 points or 0.7%. Oil companies rose sharply in Hong Kong setting a positive tone for Sinopec （NYSE:SNP）, Petrochina （NYSE:PTR） and CNOOC ltd. （NYSE:CEO） on the NYSE before the open. China's second largest mobile carrier, China Unicom （NYSE:CHU） and Aluminum Corp. of China （NYSE:ACH） outperformed the broad market in Hong Kong as well. The rally was universal in Shanghai, forty nine out of the largest fifty components of the Shanghai Composite Index （SHA:000001） ended the day in the black. Jiangxi Copper （SHA:600362） and China United Network Communications （SHA:600050） surged to the 10% daily limit on Monday.

Investors were more careful in Hong Kong, keeping an eye on Europe and the U.S., where investors have failed to take positions before the end of the year. Stocks that advanced outnumbered those that fell three to one among the 42 components of the Hang Seng Index （INDEXHANGSENG:.HSI）. Stocks of China's oil triumvirate advanced along with resource plays like Jiangxi Copper （HKG:0358） and Aluminum Corp. of China （HKG:2600）. But airliners failed to gain traction; China Southern Airlines （HKG:1055）, Air China （HKG:0753） fell 1.9% and 3.6%, respectively while Shanghai based China Eastern Airlines （HKG:0670） shed 0.3%.