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Profit expectations, stimulus fuel share gains

Shares in Shanghai largely ignored lower GDP growth figures to post modest gains on Thursday, AP reported. The Shanghai Composite Index (SCI) rose 1% to close at 2,004.95 points. Buying was reportedly helped by expectations of higher bank profits: Shares in Bank of China rose 1% to close at RMB3.08 (US$0.45). Shares in health care-related companies also rose as investors reacted to the announcement of a US$124 billion stimulus package for China’s health care system. The SCI has opened lower today. China on Thursday announced that its GDP growth came in at 6.8% in the fourth quarter, its lowest level in seven years.

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