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Chinese stocks rose for a seventh day in New York, the longest stretch of gains since October, amid speculation the government will act to bolster growth.

The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. climbed 1.7 percent to 91.54 yesterday. NQ Mobile Inc. (NQ) jumped to a record after its unit entered a partnership with Baidu Inc., and TAL Education Group (XRS) rose to the strongest level in 14 months. Web retailer Vipshop Holdings Ltd. (VIPS) soared to the highest since its U.S. listing in March 2012, while New Oriental Education & Technology Group (EDU) sank after forecasting growth that trailed analysts’ estimates.

The China-US gauge followed rallies in stock benchmarks in Hong Kong and Shanghai after Beijing News reported Premier Li Keqiang said at a recent meeting that the nation can’t allow economic growth below 7 percent. The report came after the official Xinhua News Agency said in a July 21 commentary that expansion below that level won’t be tolerated. Gross domestic product for the world’s second-largest economy rose at the slowest pace in three quarters for the April-June period.

“The key is more predictable and sustainable growth,” Joe Quinlan, the chief market strategist at U.S. Trust, a wealth management unit of Bank of America Corp., said in a phone interview from New York. “What investors need to see is more confidence that the Chinese government is on this path toward stable growth. We’ll start to see that in the second half.”

The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., added 2.8 percent to a five-week high of $34.7. The Standard & Poor’s 500 Index slipped 0.2 percent as investors weighed corporate earnings amid speculation on when the Federal Reserve may scale back its asset purchases.

NQ-Baidu Partnership

NQ, a Beijing-based mobile security service provider, soared 7.6 percent to $12.08, the biggest jump in four weeks. Trading volume was 3.3 times the daily average over the past three months, data compiled by Bloomberg showed.

NQ’s unit Beijing Feiliu Jiutian Technology Co., a social mobile platform, signed an agreement with Baidu, owner of China’s most-used online search engine. The partnership allows Baidu’s Duoku website to become the exclusive publisher of a mobile game developed by Beijing Feiliu. NQ last week raised its estimate for second-quarter sales by at least 3 percent before reporting the results in mid August.

Baidu’s ADRs slipped 0.2 percent to $109.84 in New York, slumping for a third day. The company is scheduled to report second-quarter results after the U.S. market closes today.

Emerging Markets

Chinese equities could see a modest rebound in the second half should the nation “make more concrete steps toward stimulus, restructuring and rebalancing,” said Quinlan at U.S. Trust. A rally in emerging-market equities is possible also because they are in general oversold, he said.

The MSCI Emerging-Markets Index has dropped 8.2 percent this year, compared with a 14 percent gain in the MSCI gauge for equities of developed markets.

A preliminary purchasing managers’ index from HSBC Holdings Plc and Markit Economics will show Chinese manufacturing was unchanged this month, according to a Bloomberg survey of 19 economists before a scheduled release today.

TAL Education, a Beijing-based after-school tutoring company, surged 5.8 percent to $11.60, the highest closing level since April 2012. TAL forecast sales growth of as much as 33 percent in the quarter ending in August in a July 22 statement, exceeding the average 19 percent projection of analysts compiled by Bloomberg.

New Oriental, China’s biggest educational company, slid 3.3 percent to $21.92 in a sixth day of declines after reporting earnings for the quarter ended in May.

New Oriental

The Beijing-based company predicted sales growth of 16 percent to 21 percent to as much as $406.4 million for the three months ending in August in a release yesterday. That compared with an average estimate of $410 million among five analysts surveyed by Bloomberg. It also forecast revenue growth to be as low as 18 percent for its 2014 fiscal year.

Yanzhou Coal Mining Co. (YZC), China’s fourth-largest coal producer, jumped 6 percent to $7.72, rallying the most since July 11. Its American depositary receipts traded 1.2 percent above Hong Kong shares, the seventh straight day of premiums.

Giant Interactive Group Inc. (GA), a Shanghai-based web game operator, surged 6.3 percent to $8.42, rallying the most since January. Vipshop, a Guangzhou-based online fashion retailer, climbed 4.4 percent to a record $39.18.

The Hang Seng China Enterprises Index in Hong Kong jumped 3.9 percent to 9,780.16, the biggest rally in six months, while the Shanghai Composite Index (SHCOMP) gained 2 percent to 2,043.88, rising the most in eight days.

To contact the reporter on this story: Belinda Cao in New York at lcao4@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

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