No sign of a Chinese construction collapse here. Anhui Conch Cement Company expects net 2011 profit to rise more than 80% due to higher product prices and sales volume.
While thinly traded in the US, AHCHY stock is significant in ETFs such as the iShares FTSE China 25 Index Fund (FXI, quote) and is listed on both the Shanghai and Hong Kong exchanges.
According to Chinese accounting standards Anhui Conch had a net 2010 profit of CNY6.17 billion, so it expects net 2011 profit to be more than CNY11.106 billion.
Like many of China’s stocks, Anhui Conch is benefiting from a three-month rise after new lending and money supply exceeded December estimates, fueling speculation the government is relaxing monetary policies to bolster economic growth.
Anhui Conch stock climbed 5.6% after the Xinhua News Agency said the country’s banking regulator will ensure demand for loans for the construction of affordable housing.
“It shows the government’s policy of fine-tuning monetary policies is taking effect,” Ha Jiming, vice chairman and chief investment strategist for Goldman Sachs’ investment management division for China, said in an interview with Bloomberg Television.
“The government is able to engineer a soft landing, maintaining economic growth at around 8%. The market this year will have some opportunities.”
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