China Stocks Rise to Three-Month High as Shippers, Chalco Rally China Stocks rose to a three-month high after the nation’s credit growth rebounded last month and UBS AG boosted its forecast for the nation’s expansion. Chinese shipping companies led a rally for a gauge of industrial companies, the best performer among 10 industry groups, as a benchmark of commodity shipping rates surged to the highest since January 2012. China Shipbuilding Industry Co. (601989), the nation’s largest maker of vessel equipment, jumped 8.6 percent on a plan to acquire assets. China Vanke Co. and developers climbed on speculation regulators will ease financing for property companies. Aluminum Corp. of China Ltd. surged 10 percent, pacing gains for metal stocks. The Shanghai Composite Index (SHCOMP) climbed 0.4 percent to 2,246.85 as of 9:56 a.m. China’s broadest measure of new credit almost doubled in August from the previous month, while M2 money supply growth accelerated to 14.7 percent, the fastest in three months. UBS raised its China’s growth estimate in 2013, citing yesterday’s stronger-than-expected industrial production data. “The recent economic data are pretty strong and that reinforces investors’ expectations that the economic recovery is well on track,” said Wang Zheng, Shanghai-based chief investment officer at Jingxi Investment Management Co., which manages $120 million. “That’ll boost demand for risk assets such as stocks.” The CSI 300 Index rose 0.6 percent to 2,490.64. The Hang Seng China Enterprises Index slipped 0.2 percent after entering a bull market yesterday with a 21 percent rebound from the June 25 low. The Bloomberg China-US Equity Index, the measure of the most-traded U.S.-listed Chinese companies, added 1.7 percent in New York. The Shanghai index has risen 15 percent since reaching this year’s low on June 27 amid data showing economic growth is accelerating and as shippers and port operators rallied after the State Council approved Shanghai’s Free-Trade Zone. Trading volumes surged yesterday to the highest level since October 2010.
Posted on: Wed, 11 Sep 2013 02:36:54 +0000