Chinese companies gain on public housing report

Chinese companies gain on public housing report
Published: 21 June 2011

Chinese cement makers rose sharply on expectations China’s massive construction of public houses will boost demand.

Cement companies gained following a Shanghai Securities News report that said China has issued guidelines allowing local governments to issue bonds to fund public-housing construction.

’The move may prompt more construction of public houses in the third quarter and boost demand for cement and other construction materials,’ said Zhang Xiang, an analyst at Guodu Securities.

Anhui Conch Cement rose 4.3% to CNY26.30, Jidong Cement gained 4.7% to CNY23.41, and Lionhead Cement surged by the 10% daily limit to CNY10.31.