US EUROPE AFRICA ASIA 中文
    Business / Markets

    Oil stocks rally on news of probe

    By Gao Changxin in Shanghai and Du Juan in Beijing (China Daily) Updated: 2014-07-31 06:56

    Investigation of Zhou Yongkang buoys market

    Oil shares rallied amid a dip in the benchmark on Wednesday after Beijing announced that a retired party leader with close ties to the industry was under investigation.

    The oil sector gained an average of 4.95 percent, the highest of all sectors. The benchmark Shanghai Composite Index lost 0.09 percent to 2181.24 points, breaking a six-day winning streak.

    PetroChina, the country's biggest oil and natural gas producer by output, rose by 3.08 percent to 8.04 yuan ($1.30) a share.

    The Communist Party of China Central Committee announced on Tuesday night that former security chief Zhou Yongkang is being investigated on suspicion of "serious disciplinary violations".

    Zhou was a member of the Standing Committee of the Political Bureau of the CPC Central Committee, China's top decision-making body. He worked for 31 years in China's oil industry, for a decade at State-owned China National Petroleum Corp, the parent of listed unit PetroChina. Zhou reportedly has acolytes throughout China's oil industry.

    Oil stocks rally on news of probeThe investigation gave "a massive boost to market sentiment", said Bank of America Merrill Lynch in a report on Wednesday. It means that the government can focus on economic affairs and possibly speed up much-needed reforms, the report added.

    The announcement lowered uncertainties in Beijing's anti-graft campaign and will support a sustained rise in the A-share market, Guotai Junan Securities said in a note.

    "Low evaluation blue chips and the financial sector will take the place of the steel sector to drive market growth," said the Shanghai-based brokerage.

    The CSI 300 index of blue chips in both Shanghai and Shenzhen lost 0.4 percent to 2322.01 points. The Shenzhen Component Index dropped 0.18 percent, breaking an eight-day consecutive gain.

    All 21 stocks trading in the oil sector ended Wednesday with a gain. Sinopec, the biggest oil refiner in Asia, was up 1.16 percent.

    Beijing has investigated at least six current and former CNPC executives since August, including the former chairman of CNPC and PetroChina, Jiang Jiemin, who is widely known as one of Zhou's closest allies.

    An investigation of Zhou could mean that the biggest purge of officials at CNPC is over. In Hong Kong, PetroChina's shares were unchanged at HK$10.44 a share.

    "PetroChina's gain on Wednesday reflected the market's confidence in PetroChina's future," said Chen Wen, a senior analyst with Chinese New Finance Research Institute of Peking University.

    PetroChina trades at 9.9 times projected 12-month earnings, compared with the three-year average of 11 times, according to data compiled by Bloomberg. In the long term, Chen added, PetroChina will benefit from shale gas development in the domestic market.

    Haitong Securities rates PetroChina shares a "buy" with a target price at 8.88 yuan a share, a 10.45 percent markup from Wednesday's close. It expects the company to pay a dividend of 0.74 yuan a share this year and 0.8 yuan in 2015.

    The Shanghai index surged by 6.5 percent in July, the biggest monthly advance since December 2012, triggering talks that Chinese equities have entered into a bull market. Year-to-date, the index has gained 3.1 percent.

    Oil stocks rally on news of probe  Oil stocks rally on news of probe
    Caging corrupt 'tigers'  Infographic: Zhou's associates who were probed 

    Hot Topics

    Editor's Picks
    ...
    ...
    无码播放一区二区三区| 欧美日韩中文国产一区发布 | 中文字幕一区在线观看视频| 人妻丝袜中文无码av影音先锋专区| 日韩欧美一区二区不卡中文| 久久99久久无码毛片一区二区| 亚洲啪啪AV无码片| 中文字幕在线看视频一区二区三区| 久久精品无码av| 久久精品中文字幕无码绿巨人| 无码成人精品区在线观看| 亚洲欧美中文字幕| 中文有码vs无码人妻| 国产精品无码国模私拍视频| 无码精品人妻一区二区三区中| 国产成人无码精品久久久性色| 中文字幕成人免费视频| 亚洲欧美日韩中文在线制服| 无码专区一va亚洲v专区在线| 久久久久久亚洲Av无码精品专口| 亚洲中文字幕无码久久精品1 | 亚洲国产综合精品中文第一区| 亚洲成?Ⅴ人在线观看无码| 97久久精品无码一区二区| 人妻丰满av无码中文字幕| 亚洲AV无码久久精品蜜桃| 日韩人妻无码一区二区三区 | 中文字幕你懂的| 色婷婷综合久久久久中文一区二区 | 精品无码人妻久久久久久| WWW插插插无码视频网站| 国产精品三级在线观看无码| 久久午夜无码鲁丝片| 久久久久亚洲AV无码专区体验| 未满十八18禁止免费无码网站 | 国产精品三级在线观看无码| 丰满熟妇乱又伦在线无码视频| 国产成人无码精品久久久免费 | 无码专区久久综合久中文字幕| 久久人妻AV中文字幕| 爆操夜夜操天天操狠操中文|