Appliance Makers Surge on Policy Expectations: Shanghai Mover
Hisense Electric Co. (600060) and Sichuan Changhong Electric Co. (600839) led gains in Chinese home appliance makers, bolstered by speculation the nation’s government may roll out stimulus measures to boost purchases of electronics.
Hisense (600060) climbed 9.9 percent to 19.66 yuan, the stock’s highest closing price since its listing in Shanghai in April 1997. Sichuan Changhong (600839) advanced by the 10 percent daily limit, its biggest gain since September 2008, to 2.72 yuan. China’s benchmark Shanghai Composite Index rose 0.3 percent.
Investors are anticipating the government will introduce measures that encourage purchases of home appliances after an earlier program giving shoppers as much as 400 yuan ($63) in subsidies ended Dec. 31, according to James Hu, an analyst at Capital Securities Corp. The earlier policies were issued in 2009 to bolster domestic consumption as the global financial crisis eroded demand for Chinese exports.
“It may come as early as the National People’s Congress next month,” Hu said by telephone from Shanghai, referring to the annual meeting of the nation’s legislature that’s scheduled to start March 5 in Beijing.
China’s exports fell for the first time in more than two years in January as trade was disrupted by the weeklong Chinese New Year holiday and Europe’s debt crisis hurt demand.
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