Chinese equities rose to the highest level in seven months in New York, led by AutoNavi Holdings Ltd. (AMAP), as better-than-estimated export growth boosted the outlook for Asia’s biggest economy.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. climbed 1.8 percent to 101.36 yesterday, gaining for a fifth day. AutoNavi, which provides digital map content to companies from Sina Corp. to Apple Inc., surged 19 percent for a record rally. YY Inc. (YY), an operator of entertainment websites, advanced 8.4 percent while E-Commerce China Dangdang Inc. (DANG) jumped the most since May.
The China-US gauge followed stock indexes in Shanghai and Hong Kong higher after data showed China’s overseas shipments rose 7.2 percent last month, beating the 5.5 percent median estimate of analysts surveyed by Bloomberg. The measure tracking U.S.-traded Chinese shares has risen 24 percent since reaching a two-year low on June 24, as reports ranging from industrial production to money supply signaled the economy is stabilizing.
“Internet names are liquid ways for U.S. investors to play an improving China environment and you’ll continue to see these doing well,” David Riedel, president of Riedel Research Group Inc. in New York, said by phone yesterday. “Investors have been too pessimistic about the outlook for the Chinese economy,”
The iShares China Large-Cap ETF (FXI), the largest Chinese exchange-traded fund in the U.S., climbed 2.4 percent to a three-month high of $38.27 in New York. Its seven-day advance was the longest stretch of gains this year. The Standard & Poor’s 500 Index added 1 percent, extending a rally into a fifth day.
Beijing-based AutoNavi jumped to $15.51 in New York in the biggest one-day rally since its U.S. listing in July 2010. Trading volume was four times the average over the past three months, data compiled by Bloomberg showed.
AutoNavi Chief Executive Officer Cheng Congwu said the next 12 months will be the most important time window for the company to expand its mobile map user base and market share, which has led to its decision to offer mobile navigation map for free, according to a note by Nomura International Hong Kong Ltd. yesterday.
AutoNavi saw shares tumble a record 14 percent on Aug. 28 after saying it would offer free premium navigation apps for Apple and Android smartphones in China. Alibaba Group Holding Ltd., China’s biggest e-commerce company, invested $294 million in AutoNavi in May for a 28 percent stake.
YY, based in Guangzhou, surged to $46.49, the highest level since its U.S. initial public offering in November. The gain extended its rally this year to 226 percent.
Dangdang, an Internet retailer based in Beijing, gained 14 percent to $9.23, bringing its surge this year to 122 percent.
“There’s still a lot of value left” in China’s Internet sector, Erik Lam, director of Asian equity sales at Auerbach Grayson & Co. in New York, said by phone. “A lot of people are thinking that the mobile traffic platforms are going to be monetized through gaming in the near future, with ads and e-commerce at a later stage.”
Tencent Holdings Ltd. (700), China’s biggest Internet company by market value, added three casual games in an updated version last month of WeChat, its instant messaging application, its first attempt to monetize 236 million active users, Bloomberg Industries analyst Praveen Menon wrote in a note.
RDA Microelectronics Inc. (RDA), a Shanghai-based semiconductor components maker, soared 7 percent to $13.43 in New York, the highest since February 2012. Volume was six times the 90-day average. Eight out of 11 analysts surveyed by Bloomberg recommend buying the stock while three rate it hold.
Phoenix New Media Ltd. (FENG), a Beijing-based TV and Internet news outlet, jumped 11 percent to $11.29, the highest price since June 2011. Noah Holdings Ltd. (NOAH), which distributes wealth-management products for commissions, advanced 9.6 percent to $16.18, rising the most in four weeks. Vipshop Holdings Ltd. (VIPS), an online fashion retailer based in Guangzhou, surged 9.3 percent to $47.89, the biggest gain since February.
The Hang Seng China Enterprises Index (HSCEI) climbed 1.9 percent to a three-month high of 10,528.69. The Shanghai Composite Index surged 3.4 percent to 2,212.52, the most since December.
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