China cement makers surge on social housing plan

China cement makers surge on social housing plan
Published: 09 March 2011

Shares in Chinese cement makers surged to all-time highs in Hong Kong on Wednesday, extending gains for a third consecutive session as investors flooded the sector following a central government plan to increase social housing.

China National Building Material Co was up 5.6 per cent, while Anhui Conch Cement Co Ltd had jumped four per cent by 0344 GMT.

Premier Wen Jiabao vowed on Saturday during the annual parliamentary session that China would increase spending on public housing, in an attempt to soothe growing discontent over climbing housing prices.

"At the mainland’s two meetings, many officials announced news on subsidised housing. That will lift demand for cement," said CIMB Research analyst Gary Cheng in Hong Kong.

Cheng cautioned that with the meetings coming to an end, the catalyst driving cement shares higher may subside, with speculative investors likely to take profit after heavy gains.

Source: Reuters