China shares outlook - Higher on banks' H1 earnings forecasts

SHANGHAI (XFN-ASIA) - China shares are expected to open higher with banks likely to get a boost after solid growth projections for first half earnings, dealers said. Industrial and Commercial Bank of China (ICBC) (SHA 601398; HK 1398), the country's largest bank, said first half net profit is expected to have risen by over 50 pct year-on-year, while Shanghai Pudong Development Bank (SHA 600000), in which Citigroup holds a 3.78 pct stake, projected first half net profit growth of more than 140 pct. Dealers added that sentiment is also likely to be buoyed by news that Taiwan will relax investment caps in China stocks. Taiwan's cabinet, the Executive Yuan, yesterday decided to let securities investment trust funds invest up to 10 pct of their net assets in China-listed stocks, raising the ceiling from 0.4 pct. Yesterday, the... [read full story]