NQ Mobile Inc. (NQ) surged to a three-month high, driving gains in Chinese companies traded in New York, after Altimeter Capital Management LLC reported an increase in holdings. Cnooc Ltd. (883) sank the most since June 2012.
The Bloomberg China-US Index of the most-traded Chinese stocks in the U.S. added 0.4 percent to 102.87, snapping a three-day slump. It trimmed a gain of as much as 1 percent amid concern that the easing of a cash crunch that prompted a rally in the Shanghai Composite Index may prove short-lived. NQ Mobile, a mobile-security services provider, soared 9.4 percent. Cnooc fell as its forecast for output growth prompted two analysts to cut their recommendations for the shares.
China’s economic growth slowed in the fourth quarter as gains in factory output and investment spending eased, sapping momentum amid a credit clampdown, the National Bureau of Statistics said Jan. 20 in Beijing. The seven-day repurchase rate, a gauge of interbank funding availability, dropped the most in four weeks yesterday after the People’s Bank of China added 255 billion yuan ($42 billion) to the financial system and expanded a loan facility to meet demand for cash before the nation’s Lunar New Year.
“The PBOC is trying to prevent a further spike rather than a real effort to bring rates down,” Michael Wang, an emerging-markets strategist at Amiya Capital LLP in London, said by e-mail. “People realize the market is cheap, but don’t want to buy unless it’s clearer growth is worse and credit will loosen.”
The seven-day repurchase rate, a gauge of interbank funding availability, dropped 88 basis points to 5.44 percent in Shanghai, according to a daily fixing compiled by the National Interbank Funding Center. It surged 153 basis points Jan. 20, the most in seven months.
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S. was unchanged at $35.80 yesterday. The Standard & Poor’s 500 Index gained 0.3 percent.
NQ Mobile, based in Beijing, soared to $17.07, the highest since Oct. 23. Altimeter Capital, based in Boston, said it increased its passive stake in NQ Mobile to 17.3 percent, from 9.85 percent it reported Jan. 14, its regulatory filings showed.
Semiconductor Manufacturing International Corp. (SMI), a Shanghai-based maker of integrated circuits, surged 7.9 percent to $4.92, the highest since May 2011. The stock has jumped 18 percent in three days.
American depositary receipts of Cnooc, China’s largest offshore oil and gas producer, slid 5.4 percent to $168.70. Trading volume was five times the 90-day average compiled by Bloomberg.
The Beijing-based company will produce 422 million to 435 million barrels of oil equivalent this year, or a 5.6 increase from a year earlier, it said in a statement to the Hong Kong Stock Exchange Jan. 20. Cnooc maintained its 6 percent to 10 percent average annual output growth target from 2011 to 2015, it said in a statement on the same day, citing Chief Executive Officer Li Fanrong.
Gordon Kwan, the regional head of oil and gas research at Nomura Holdings Inc., lowered his rating on Cnooc to reduce, an equivalent to sell, from buy, and cut a price target by 7 percent to HK$13 ($1.68). Neil Beveridge, a Hong Kong-based analyst at Sanford C Bernstein & Co., downgraded Cnooc to market perform from outperform and cut its 2014 price target by 20 percent to HK$16, saying the company’s production guidance was “a significant disappointment.”
Home Inns & Hotels Management Inc. (HMIN), China’s biggest budget hotel chain operator, tumbled 8.1 percent to $37.01 yesterday, dropping the most in seven months. China Lodging Group Ltd. (HTHT) slumped 7 percent to $27.90, the largest decline since October.
The Hang Seng China Enterprises Index (HSCEI) in Hong Kong gained 1.8 percent to 10,218.41, rising the most in two months, while the Shanghai Composite advanced 0.9 percent to 2,008.31, the biggest rally in a week.
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