Shares of the following companies had unusual moves in China trading. Stock symbols are in parentheses as of 3 p.m. close.
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, rose 53.90, or 1.8 percent, to 2,996.21. The CSI 300 Index (SHSZ300) gained 2 percent to 3,334.51.
Consumer stocks: Gree Electric Appliances Inc. (000651) (000651 CH), China’s largest maker of home air-conditioners, gained 4.6 percent to 22.59 yuan, a record high. Qingdao Haier Co. (600690 CH), the biggest refrigerator maker, climbed 4.4 percent to 31.09 yuan.
Incentives for rural purchases of home appliances may boost spending, Premier Wen Jiabao said at the National People’s Congress over the weekend in Beijing. Midea was initiated at a “conviction buy” at Goldman Sachs Group Inc., which cited the company’s “strong position’” in the air-conditioner market, large overseas “exposure” and “comprehensive” product offering. Goldman Sachs initiated coverage of China’s white- goods industry with a “positive stance.”
Air China Ltd. (601111) (601111 CH), the nation’s largest international carrier, rose 2.6 percent to 12.08 yuan, the highest since Feb. 21. The airline’s profit improved “significantly” in 2010, Chairman Kong Dong said in Beijing. Air China may consider overseas acquisitions by 2015, he said.
China Shenhua Energy Co. (601088 CH), the nation’s largest coal producer, surged by the 10 percent daily limit to 28.37 yuan, the biggest gain since November 2008. The company said it received government approval to start developing a coal field in Inner Mongolia.
Dongfeng Automobile Co. (600006 CH), which makes light trucks in China with Nissan Motor Co., added 1.3 percent to 5.37 yuan. The company said vehicle sales rose 32 percent in February from a year earlier to 46,355 units.
Luthai Textile Co. (000726 CH), a textile maker in the eastern province of Shandong, climbed 3.7 percent to 10.70 yuan. Shenyin & Wanguo Securities Co. raised its recommendation on the stock to “buy” from “outperform,” citing the company will benefit from better-than-expected exports amid the U.S. recovery, Wang Liping and Dai Huihui, analysts at the Shanghai- based brokerage, wrote in a report today. The brokerage set a share-price estimate of 15 yuan.
Shanxi Lu’an Environmental Energy Development Co. (601699 CH) jumped the 10 percent daily cap to 64.05 yuan. Shenyin & Wanguo Securities raised the coal producer’s earnings per share forecast for 2011 by 9.8 percent to 3.35 yuan after the company’s 2010 profit exceeded market estimates, Zhan Lingyan and Liu Xiaoning, analysts at Shenyin & Wanguo, wrote in a report today.
--Zhang Shidong. Editor: Richard Frost
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