Monday, October 15, 2007

People's National Congress giving stocks a boost

Perhaps the most valid evidence that today's People's National Congress in China is having no negative effect on the markets: The Shanghai Composite Index was up more than 2% today.

A-Shares Top 6000

So much for any lingering fears that the PNC would have an adverse effect, as it did in 1997 and 2002. The environment has changed drastically since then, however, and Chinese stocks are more than happy to benefit. With crude oil trading above $85 this morning, Chinese oil stocks are soaring.

PetroChina (PTR) is up an insane 11.2% ($24) to 240 in premarket trading. CNOOC Ltd. (CEO) is up 6.8% to 190. China Mobile (CHL) is up 4.4% to 91.

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