Shares close up, start-up board continues decline

Shares closed up 1.22 percent Tuesday, amid expectations that banks will continue to ramp up lending to support the economy, dealers said.

The Shanghai Composite Index, which covers both A and B shares, was up 37.58 points to 3,114.23 on turnover of 170.3 billion yuan ($24.9 billion).

China Securities Journal reported that the country's biggest four banks had extended new loans of about 136 billion yuan ($19.9 billion) in October, up from 110 billion yuan ($16.1 billion) in September.

"The figure showed market liquidity remains ample and the government hasn't started to tighten bank lending," said Zhai Peng, an analyst at Guotai Junan Securities.

China's new growth enterprise board (GEB) for start-up companies continued to fall on its third day, with 23 of the 28 stocks on the board losing ground.

Among the losers, four were limit down 10 percent.

"The performance of start-ups was mixed with more gainers than Monday, but the prices of many are still too high compared with their fair value," said Zhang Qi, an analyst with Haitong Securities.

China Merchants Securities announced it would launch an initial public offering for a listing on the main board and would start taking subscriptions November 9 and 10.

Listed companies that own a stake in China Merchants Securities gained on expectations the brokerage will make a strong debut.

Property developers with land reserves in areas where Shanghai Disneyland could be built also rallied on expectations Beijing will approve the park.

Agencies

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