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Wen's speech boosts shareholders'confidence in Xinjiang, Tibet listed companies

(Xinhua)
Updated: 2010-03-06 14:32

URUMQI -- Chinese Premier Wen Jiabao Friday vowed to further promote the economic and social development of Tibet and Xinjiang, a pledge welcomed by investors in the regions' listed companies.

Delivering a government work report to the Third Session of the 11th National People's Congress (NPC), China's top legislature, Wen stressed the government's determination to ensure Xinjiang and Tibet's rapid economic development.

Share prices of Xinjiang's 34 companies listed on Chinese mainland markets rose by 0.24 percent on average, but those of the Tibetan firms dipped on Friday.

"Xinjiang and Tibet stocks are still in a bull market and we are very optimistic about their potential, especially after the government said it would draw up favorable policies for their development on Friday," said Lu Xiaoping, an analyst with Xinjiang-based Hongyuan Securities Company (Hongyuan).

"The stocks are in a short-term adjustment after a recent rapid rise amid a languid market," Lu said. Xinjiang stocks had risen 10 percent over the last two months. Tibetan stocks rose almost 20 percent in the first 18 days of the year.

"The speech shows that our government will carry on with the development of the western regions. It is a great boost to investor confidence in the future of the regions' enterprises," said Cao Wei, who watched Wen's speech on a screen with a crowd of other small investors in Hongyuan.

Wu Dan, also in the crowd, said he earned much from Xinjiang stocks last year and would focus on buying Xinjiang's new energy stocks, which "will certainly rise."

"What I've bought is the prospects of Tibet," said Zhen Mingxin who knew little about stocks, but had bought two Tibetan stocks two years ago.

At the fifth meeting on the work of Tibet, from January 18 to 20, Chinese President Hu Jintao and other senior leaders agreed that China would achieve "leapfrog development" and lasting stability in Tibet.

A meeting on work in Xinjiang, when key policies on the region's economic development will be released, is being planned.

An official with the regional government said anonymously that the central government was mulling "unprecedented" favorable policies to boost Xinjiang's development.

Xinjiang and Tibet enjoy rich natural resources and picturesque scenery. Their listed companies, mostly focusing on mining, energy, tourism and construction, have been performing well and would do better in the future, analysts said.