China’s stocks rose the most in almost two weeks, led by consumer staples and financial shares, before the conclusion of a four-day Communist Party meeting.
Kweichow Moutai Co. (600519), China’s biggest liquor maker, climbed 3.8 percent after it announced plans to buy property in France to expand its business. Cosco Shipping Co. (600428) paced gains for shippers after the China Securities Journal reported the government will make it easier to get subsidies to encourage the scrapping of older vessels. Ping An Bank Co. (000001) surged 4.9 percent. China Oilfield Services Ltd., the drilling unit of the nation’s largest offshore oil producer, slid 1.9 percent.
The Shanghai Composite Index (SHCOMP) added 0.8 percent to 2,126.77 at the close, the biggest advance since Oct. 30. Trading volumes plunged 34 percent below the 30-day average after falling to a four-month low yesterday. Top party officials are meeting in Beijing to map out a blueprint for reform as the country heads for its slowest growth in more than two decades. A communique will be released after the meeting ends today.
“The market is waiting for news from the plenary meeting to see if coming policies will exceed expectations,” said Wei Wei, an analyst at West China Securities Co. in Shanghai. “Market sentiment is cautious as trading volumes are light.”
The Shanghai Composite has dropped 13 percent from this year’s high set on Feb. 6 amid concern economic growth will slow in the fourth quarter. The measure trades at 8.4 times projected profit for the next 12 months, compared with the seven-year average of 15.3, according to data compiled by Bloomberg.
A gauge of consumer staples in the CSI 300 jumped 1.9 percent for the biggest gain among 10 industry groups, followed by a 1.4 percent advance for financial shares.
Kweichow Moutai surged 3.8 percent to 144.84 yuan. The liquor maker said yesterday the board approved a plan to buy a property in Paris for 8.79 million euros ($11.8 million) to develop its business in Europe. Rival Wuliangye Yibin Co. advanced 3.2 percent to 17.04 yuan.
Ping An Bank Co., a unit of the second-biggest Chinese insurer, climbed 4.9 percent to 14.05 yuan. Huaxia Bank Co., partly owned by Deutsche Bank AG, rose 2.2 percent to 7.85 yuan.
China’s broadest measure of new credit fell by more than estimated in October. Aggregate financing was 856.4 billion yuan ($140.6 billion), the People’s Bank of China said yesterday after the market closed, below all nine projections in a Bloomberg News survey. New local-currency loans of 506.1 billion yuan compared with the 580 billion yuan median estimate of analysts.
“Money and credit growth were still quite solid and investors should not be too much swayed by the seasonality in new loans, deposits and total social financing,” Lu Ting, head of Greater China economics at Bank of America Corp., wrote in an e-mailed report. “We don’t expect the PBOC to significantly tighten monetary policies as new leaders still need a stable economic and financial environment to consolidate their power base.”
Cosco Shipping, a unit of China’s largest shipping company, gained 2.8 percent to 3.34 yuan. China Shipping Development Co. (600026), a unit of the nation’s second-biggest sea-cargo group, added 1.2 percent to 4.16 yuan.
China will lower the threshold on subsidies for scrapping ships, the China Securities Journal said, citing an unidentified person. The ministries are reviewing the draft rules, which may be announced before the end of the year, it said.
China Oilfield Services slipped 1.9 percent to 23.66 yuan, trimming its gain to 44 percent this year. The 14-day relative strength measure for the stock, measuring how rapidly prices have advanced or dropped during a specified time period, rose to 74 last week. Readings above 70 indicate a price may be poised to fall. Offshore Oil Engineering Co. (600583), a unit of the country’s third-largest oil producer, declined 3.4 percent to 8.66 yuan.
To contact Bloomberg News staff for this story: Zhang Shidong in Shanghai at firstname.lastname@example.org