Editorial Summary

The Shanghai Composite Index rose 0.56 percent to close at 5,180.5 on Friday, while the Shenzhen Composite Index increased 1.13 percent to close at 1,518.3. Trading volume on the Shanghai and Shenzhen Stock Exchanges reached RMB118.4 billion and RMB65.5 billion, respectively.

Bank stocks were up after eight banks announced year-on-year growth in net profit in 2007 on Wednesday, due in major part to a surge in non-interest income, an increase in interest rate margin and expansion of assets, reports Shanghai Securities Journal.

China's largest bank Industrial and Commercial Bank of China (ICBC) (601398.SH; 1398.HK) estimates its 2007 net profit grew over 60 percent year-on-year to exceed RMB7.8 billion. China Construction Bank (CCB) (601939.SH; 0939.HK), one of China's four largest State-owned commercial banks, announced that its net profit rose 48 percent year-on-year to RMB68.6 billion in 2007. Shares of ICBC and CBC rose 1.95 percent and 0.64 percent to close at RMB7.86 and RMB9.41, respectively, on the Shanghai Stock Exchange on Friday.

Shenzhen Development Bank (000001.SZ) estimates the bank's net profit rose between 100 and 110 percent year-on-year in 2007, and earnings per share would be up between 86 and 96 percent year-on-year. China Merchants Bank (600036.SH), China CITIC Bank (601998.SH), Shanghai Pudong Development Bank (600000.SH), Bank of Ningbo (002142.SZ) and Bank of Beijing's (601169.SH) estimates for 2007 net profit growth of between 30 and 110 percent.