Solars Drive Rally as Focus Media Slips: China Overnight

Chinese equities in New York rose, pushing the benchmark index to a one-month high, as solar stocks jumped and improving U.S. employment data bolstered the outlook for China’s second-biggest export market.

The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese shares in the U.S. climbed 0.1 percent to 93.78 by 11:08 a.m., set for the highest close since Nov. 7. JinkoSolar Holding Co. (JKS) surged 20 percent, spurring gains in Trina Solar Ltd. (TSL) and LDK Solar Co. (LDK), after the solar manufacturer said its Swiss unit would get as much as $1 billion from China Development Bank Corp. Focus Media Holding Ltd. (FMCN) was poised for its steepest drop since July after Dow Jones Newswires reported CDH Investments Fund Management Co. is withdrawing from the group bidding to take the company private.

Thirty-day volatility on the China-US gauge dropped for a second day, as the U.S. Labor Department said payrolls rose more than economists expected in November and the jobless rate in the world’s largest economy sank to the lowest in almost four years. The U.S. is the second-biggest consumer of Chinese exports after Europe, accounting for 17 percent of the nation’s overseas shipments, according to Shenyin & Wanguo Securities Co.

“You have a global economy that at least in the U.S. no longer appears to be getting worse, and as a major export destination for China that helps,” Jim Oberweis, who oversees $700 million as president of Oberweis Asset Management Inc. in Lisle, Illinois, said by phone yesterday. “From a macro standpoint, it appears that the worst is probably behind us.”

ETF Jumps

Melco Crown Entertainment Ltd. (MPEL) climbed 2.5 percent to $15.20 after the Macau casino operator announced it was buying a 93.1 percent stake in Laguna, Philippines-based Manchester International Holdings Unlimited Corp. (MIH)

The iShares FTSE China 25 Index Fund, the biggest Chinese exchange-traded fund in the U.S., jumped 0.3 percent to $38.37, headed for the highest close since March 16. The Standard & Poor’s 500 Index was little changed at 1,413.16 as a report showing consumer confidence in the U.S. declined to a one-year low in December overshadowed the employment data.

The Hang Seng China Enterprises Index (HSCEI) added 0.5 percent to 10,919.24 yesterday, capping a 2.8 percent advance in the week, while the Shanghai Composite Index (SHCOMP) of domestic shares gained 1.6 percent to 2,061.79, the highest level since Nov. 12. The measure rose 4.1 percent this week, the most since October last year.

To contact the reporter on this story: Victoria Stilwell in New York at vstilwell1@bloomberg.net

To contact the editor responsible for this story: Emma O’Brien at eobrien6@bloomberg.net

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