Oct. 18, 2012 - Following China Resources Internationals' recent announcement of higher than expected earnings in the third quarter of 2012, we are now seeing that it has been an excellent quarter not only for China Resources International, but also for mining and for China as a whole. Globally the stock exchanges have seen positive movement attributed to this positive news.
The FTSE 100 in the UK today hit its one-month high with its local mining shares boosted by improved outlook and boosted investor confidence in China, the world’s largest consumer economy.
The Chinese economy grew as expected, 7.4 percent less than in the same quarter in 2011, but surprising September retail sales (14.2% rise) and industrial production (9.2% rise) figures were higher than expected giving many investors hope that the country can expect a more positive final quarter.
Mining shares rallied In the Australian ASX too, pushing the market to 4559 points; close to its 14 month high, and its 2011 high, allegedly due to economic outlook improvement in China's third quarter data.
In Asia the markets also reflected the positive feeling yesterday with the Japanese Nikkei Stock Average advancing 2 per cent, while in Hong Kong, the Hang Seng Index rose 0.7 per cent and the Shanghai Composite climbed 1.1 per cent.
Market analyst’s opinions seem to converge on the idea that last quarter may represent the market's through, and that this next period will see positive movement. While the growth may be sluggish in the final quarter of 2012, this is forecast to pick up.
According to reports by Reuters, China's Premier Wen Jiabao, has been quoted as saying the "The economic situation in the third quarter is relatively good and we have the confidence to say that the Chinese economy is showing signs of stabilizing and will continue to show positive changes".
China Resources International only last week announced stronger than expected third quarter earnings, so according to China Resources International C.E.O Mr Yang Wu this news comes as no surprise whatsoever, and signifies a strong local economy and increased investor confidence in the mining sector as a whole.
About the company
China Resources International is primarily engaged in the exploration, mining of gold in east and south east China. The Company also processes, produces and distributes gold and other precious metals. In late 2004, China Resources International purchased 2000 hectares in the Guizhuo Province in south-east china, an area already well known for gold mining.