Chinese stocks rose in New York, sending the benchmark index higher for the first time this week, as solar manufacturers rallied and Qihoo 360 Technology Co. (QIHU) advanced after winning market share.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. gained 1 percent to 84.41 as of 4 p.m., paring the week’s slide to 1.9 percent. Yingli Green Energy Holding Co. (YGE) surged to a 14-month high and Trina Solar Ltd. (TSL) surged the most in six weeks on prospects margins will improve. Qihoo climbed to the highest level in two weeks.
Increases in the prices of modules and cells, and declines in costs for raw materials for solar panels, may boost second-quarter profit margins at manufacturers, Bloomberg Industries said in a report yesterday. The search engine that Qihoo started in August now has 15 percent of China’s market, while Baidu Inc. (BIDU)’s share slid below 70 percent, TechinAsia reported, citing Chinese data provider CNZZ.
“Investors are beginning to view solar power projects as an attractive risk-reward opportunity,” Chris Kettenman, the Chief Energy Strategist at Prime Executions Inc. in New York, said by e-mail. “We are hearing from multiple sources that the market is picking up.”
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., added 1.1 percent to $32.07, trimming its eighth weekly slump 1.4 percent. The Standard & Poor’s 500 Index gained 1 percent, bringing its weekly rally to 1.6 percent, after data showed faster-than-forecast jobs growth in the U.S.
Yingli, the world’s biggest solar-panel maker, jumped 13 percent to $3.76, the highest level since May 2012. American depositary receipts of Trina soared 11 percent to $6.83, rising the most since May 20.
Deutsche Bank AG said in a July 3 note that positive momentum in the solar industry will continue for the next three to six months.
American depositary receipts of Beijing-based Qihoo added 3.3 percent to $48.30, the highest level since June 19. Baidu’s ADRs added 2.6 percent to $91.52, the first gain this week.
51Job Inc. (JOBS), a Shanghai-based online human resources service company, sank 5.4 percent yesterday to $61.85, sliding the most since December. The company was the biggest decliner on the China-US gauge.
The Shanghai Composite Index (SHCOMP) advanced 1.4 percent this week to 2,007.2, the first rally in five weeks. The Hang Seng China Enterprises Index in Hong Kong slumped 1.1 percent to 9,209.34, dropping for the seventh time in eight weeks.
To contact the reporter on this story: Belinda Cao in New York at email@example.com