China’s stocks rose, sending the benchmark index to a six-week high, on speculation the government will introduce measures to boost equities before a leadership transition next month.
Bloomberg reported that GF Securities Company climbed 2.6 per cent, leading gains among brokerages, after the regulator scrapped administrative reviews on securities firms’ asset management businesses. Henan Shuanghui Investment & Development Company, the listed unit of China’s biggest hog processor, added 1.8 per cent after third-quarter profit more than doubled. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Company, China’s biggest producer of rare earth, declined the most in a month after earnings slumped.
“Investors anticipate the market will be stable before November’s Party Congress as the government will usually try to create a good environment for important events,” said Wu Kan, a fund manager at Dazhong Insurance Company in Shanghai, which oversees $285 million.
The Shanghai Composite Index gained 0.2 per cent to 2,132.76 at the close, the highest level since September 10. The CSI 300 Index added 0.4 per cent to 2,341.59. The Hang Seng China Enterprises Index of Chinese companies traded in Hong Kong rose 0.3 per cent. The Bloomberg China-US 55 Index, the measure of the most-traded U.S.-listed Chinese companies, fell 0.7 per cent in New York on October 19.
The Shanghai Composite rose 1.1 per cent last week, a fourth week of gains and the longest winning stretch since April, after Premier Wen Jiabao said the economy has started to stabilise as data including industrial production and retail sales beat forecasts.