Tuesday Jul 08 2008
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China's shares rise for 2nd day, led by coal producers on news resource tax to be postponed
Published: Jul 08, 2008 

China's shares rose for a second day Tuesday, with news the government was postponing a resource tax lifting coal producers and hopes for an Olympics-led tourism boost pushing up airline stocks.

The benchmark Shanghai Composite Index rose 0.81 percent to 2814.95 points. The Shenzhen Composite Index for China's smaller second market rose 1.23 percent to 857.4 points.

Shares in coal producers rose after the official newspaper China Securities News reported that the government postponed imposing a planned resource tax due to concerns it might fuel inflation. Rumors about the possible tax had earlier sparked fears it would hurt profits, driving down coal suppliers.

Shares in midsize producer Anhui Hengyang Coal Ltd. rose by the full daily limit of 10 percent. China Shenhua Energy Corp., China's biggest coal producer, rose 3 percent.

Airlines also rose, adding to recent gains on investor expectations of strong tourism growth for August's Beijing Olympics. Air China Ltd., the country's No. 2 carrier by passenger numbers, rose 6.8 percent; industry leader China Southern Airlines Corp. was up 2.15 percent.

Despite strong economic growth and robust corporate profits, Chinese shares have been battered by investor worries about record-high oil prices and a possible interest rate hike to cool inflation.

The main Shanghai index has gained 6.1 percent since hitting a 16-month low of 2,651.6 on July 1. But it is still off 54 percent from its all-time high of 6,092.06 points on Oct. 16.

Mr. Yang Yuanyuan, Minister of CAAC

Mr. Yang Yuanyuan, former Minister of CAAC , was there at Aviation Expo/China 2007 with us

Mr. Gao Hongfeng, Vice Minister of CAAC,

Mr. Gao Hongfeng, Vice Minister of CAAC, was there at Air Show China 2002 with us

Mr. Yang Guoqing, Vice Minister of CAAC

Mr. Yang Guoqing, Vice Minister of CAAC, was there at Aviation Expo/China 2005 with us | Video

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