China Stocks Rise Most in Two Weeks on Economic Growth Optimism

China’s stocks rose the most in two weeks on optimism that the nation’s economy is stabilizing.

Jiangxi Copper Co. gained 2.3 percent as commodity producers rallied. Citic Securities Co. (600030) and Haitong Securities Co. jumped more than 5 percent after the Shanghai Stock Exchange said it is considering a change in settlement rules that would allow investors to buy and sell a stock on the same day. Hangzhou HIK-Vision Digital Technology Co. surged 8.3 percent, leading a gauge of technology shares to their highest level in two years.

The Shanghai Composite Index (SHCOMP) rose 1.9 percent to 2,096.47 at the close, paring its 2013 decline to 7.6 percent. Trading volumes were 21 percent above the 30-day average. Credit Suisse Group AG and Deutsche Bank AG increased their economic forecasts for China in the past week as data from manufacturing to exports indicate the world’s second-biggest economy is strengthening after a two-quarter slowdown.

“Signs are emerging that China’s economy will rebound,” said Wu Kan, a Shanghai-based fund manager at Dragon Life Insurance Co., which oversees $3.3 billion in assets.

The CSI 300 Index added 2.1 percent to 2,335.62. The Hang Seng China Enterprises Index (HSCEI) climbed 1.5 percent.

Jiangxi Copper, China’s biggest producer of the metal, rose 2.3 percent to 17.28 yuan. Western Mining Co., the nation’s fourth-largest maker of zinc concentrate, added 2.4 percent to 6.07 yuan. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co. (600111) gained 1.5 percent to 29.18 yuan.

Credit Suisse raised its estimate for economic expansion this year to 7.6 percent from 7.4 percent. Deutsche Bank last week lifted its forecast for the July-September period to 7.7 percent from 7.5 percent and its fourth-quarter target to 7.8 percent from 7.7 percent.

Brokerages Gain

The nation will speed up infrastructure construction for new major projects in the west of the country this year, according to a statement posted to the National Development and Reform Commission’s website.

Citic Securities, China’s biggest listed brokerage, gained 5.2 percent to 11.06 yuan. Haitong Securities, the second biggest, jumped 8.1 percent to 11.35 yuan. Everbright Securities Co. (601788) added 4.2 percent to 10.25 yuan.

The exchange is mulling a move to a “T+0” settlement, an unidentified exchange spokesman said yesterday on its Weibo microblogging platform. There is no timetable for allowing T+0 stock trading, Xinhua News Agency reported last month, citing an unidentified official at the China Securities Regulatory Commission, which oversees the nation’s capital markets.

Regulator’s Decision

“It’s a good news to have for the brokers and something we definitely will have in the future,” said Zhou Wei, an analyst at Founder Securities Co. “The key is the timeframe and it’s for the CSRC to have a final decision on the matter.”

The regulator didn’t immediately reply to a faxed query on their stance over T+O. China currently operates a T+1 system.

The Shanghai Composite is valued at 8.4 times its projected 12-month earnings, compared with the five-year average of 12.7 times, according to data compiled by Bloomberg.

A measure tracking technology stocks advanced 3.2 percent, the highest close since July 22, 2011. Hangzhou HIK-Vision advanced 8.3 percent to 24.66 yuan. Neusoft Corp., a software developer, gained 5.1 percent to 12.41 yuan.

China should ensure its city and county government agencies use genuine software by the end of this year, Xinhua reported on Aug. 23, citing Vice Premier Wang Yang.

To contact Bloomberg News staff for this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net

To contact the editor responsible for this story: Michael Patterson at mpatterson10@bloomberg.net

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