Anhui Conch: favoured stock says Citigroup

Anhui Conch: favoured stock says Citigroup
Published: 18 February 2005

Anhui Conch Cement, China’s biggest cement maker, is among stocks favoured by a senior Citigroup analyst, because of increasing construction in the world’s fastest-growing major economy. "The infrastructure buildup is still a long-term theme in China," Xue, head of China research at Citigroup’s Smith Barney unit, told Bloomberg News in a televised interview. "Prospects are very good" for Anhui Conch.

The Chinese economy grew 9.5 per cent in 2004, government figures last month showed. The pace of growth was the fastest in eight years. Investment in fixed assets such as factories and roads grew 26 percent even after government measures to curb expansion. Investment in the cement industry more than doubled last year, the National Development and Reform Commission, China’s top planning body, said in January.

On Thursday, Anhui Conch’s Hong Kong shares closed 0.6 per cent lower at 8.55 Hong Kong dollars, or $1.10, paring their gain in the past six months to 4.9 per cent. The Shanghai-listed stock fell 2 percent to 8.89 yuan, or $1.07.