Free-Trade Speculation Rally Spreads From Tianjin to Qingdao

October 10, 2013 Leave a comment

Tianjin Companies Rally on Free-Trade Optimism: Shanghai Mover

Tianjin Port Co. (600717) rallied by the daily limit for a second day, leading gains in companies based in the city southeast of Beijing, on speculation it will follow Shanghai in gaining approval for a free-trade zone. Tianjin Port, Tianjin Quanye Bazaar (Group) Co. (600821), a department store operator, and Tianjin Marine Shipping Co. (900938) all jumped 10 percent at the 11:30 a.m. break in Shanghai. Volumes for the stocks were at least 25 percent higher than 20-day average for this time of day. The Shanghai Composite Index (SHCOMP) dropped 0.1 percent. Tianjin is awaiting approval from the central government to set up a free-trade zone in the Dongjiang Bonded Port Area, Radio Television Hong Kong reported Sept. 30. China’s markets were shut for a week from Oct. 1 for holidays. Companies with the word Shanghai in their name surged since Aug. 22, when the Commerce Ministry said the government approved a free-trade area in the coastal city. “The proposed free-trade zone in Tianjin is likely to give a significant boost to the local economy with several companies likely to benefit,” Gerry Alfonso, a trader at Shenyin & Wanguo Securities Co. in Shanghai, said by e-mail. “There are buy and hold opportunities in the sector but there is going to be some volatility.” Shanghai International Port Group Co. surged 126 percent since Aug. 22. The stock has fallen 17 percent over the past five trading days as the zone was opened.

To contact Bloomberg News staff for this story: Allen Wan in New York at awan3@bloomberg.net

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