Citic Securities Co. (600030) (600030 CH) gained 4.7 percent to 12.63 yuan, the biggest advance since April 18. Ping An Insurance Group Co. (2318) (601318 CG) increased 2.4 percent to 45.74 yuan. Bank of Ningbo Co. (002142 CH) advanced 3.4 percent to 9.98 yuan. Chinese financial index including banks, brokerages and insurers on the CSI 300 rose 2 percent, the most since May 17, the second-biggest gain among 10 groups in Shenzhen.
China will make Qianhai, part of the Shenzhen economic zone, a test ground for freer yuan usage and capital account convertibility, the National Development and Reform Commission said today. Officials are seeking to develop Qianhai into a financial service hub. Financial stocks are also better valued and insurers’ May income is improving, Xie Jiyong, analyst at Capital Securities Corp., said in phone interview in Shanghai. The financial index trades at multiple of 8.5 times, compared to CSI 300’s 12.2 times.
Kweichow Moutai Co. (600519) (600519 CH), the largest maker of baijiu liquor, advanced 1.3 percent to 239.15 yuan. Wuliangye Yibin Co. (000858) (000858 CH), the second biggest, gained 2.4 percent to 32.76 yuan. Bank of Communications Co. recommended buying shares of “defensive” companies whose earnings may be sheltered from the slowdown.
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