Chinese Solar Companies Rally as Loan Data Boost Stocks

Chinese stocks rose for a third day in New York after faster-than-estimated lending growth suggested an easing in credit, supporting the government’s efforts to stem a slowdown in Asia’s biggest economy.

The Bloomberg China-US Equity Index added 0.3 percent to 108.12 in New York, extending its three-day advance to 2.7 percent. Yingli Green Energy Holding Co., the biggest solar-panel maker globally, led gains among peers after the World Trade Organization upheld several claims China made against a dozen U.S. Commerce Department countervailing duty investigations. Bona Film Group Ltd. (BONA) surged to the highest price since March as trading volume soared.

The China-US gauge followed indexes for equities traded in Hong Kong and Shanghai higher after data released yesterday by the People’s Bank of China showed new credit and money supply expansion in June topped analysts’ estimates, signaling a shift toward some relaxation in monetary policies. China Premier Li Keqiang said he is confident that economic growth can be maintained at “medium-high” levels, according to a statement posted on the central government’s website July 14.

“The loan data shows China’s lending growth has bottomed out, which is positive to the economy,” Qinwei Wang, a London-based economist at Capital Economics Ltd., said by phone. “Economic growth seems to have stabilized, as we can sense from the Premier’s latest comments.”

‘Some Relief’

Yingli climbed 3.5 percent to $3.51, completing a three-day surge of 11 percent. The Baoding, China-based company signed a contract with Societe Nationale D’Electricite, Senegal’s state-owned utility, to develop a 2-megawatt solar plant, according to a statement it issued yesterday.

Trina Solar Ltd. (TSL), the country’s largest profitable panel manufacturer, added 0.9 percent to $11.86. Shanghai-based JA Solar Holdings Co. gained 0.3 percent to $10.12 in a third day of advances.

The WTO ruling should give China’s solar module companies “some relief,” which is also positive for some U.S. installation and financing firms, Pavel Molchanov, an analyst at Raymond James & Associates Inc. wrote in a note.

Aggregate financing was 1.97 trillion yuan ($317 billion) in June, China’s central bank said on its website yesterday, compared with a median analyst estimate for 1.425 trillion yuan. New yuan loans were 1.08 trillion yuan, compared with a 955 billion yuan median projection in a Bloomberg survey. M2 money supply grew 14.7 percent from a year earlier, the fastest since August.

Bona Holdings

Bona’s American depositary receipts jumped 4.2 percent to $6.90, the highest level since March 20. Trading volume was more than four times the average over the past three months, according to data compiled by Bloomberg.

Beijing-based Bona said in statements dated July 13 that two shareholders increased their holdings in the company, including Yu Dong, the film producer’s chairman and chief executive officer.

Youku Tudou Inc. (YOKU), China’s biggest operator of video websites, dropped 3.6 percent to a one-month low of $20.71 in New York. A Fed policy report said valuations for smaller firms in the social media and biotechnology industries appear “substantially stretched.” Companies on the China-US gauge trade at 18.5 times 12-month forward earnings on average, the highest level since November 2010.

The iShares China Large-Cap ETF, the largest Chinese ETF in the U.S., was unchanged at $38.40. The Standard & Poor’s 500 Index retreated 0.2 percent.

The Hang Seng China Enterprises Index (HSCEI) in Hong Kong climbed 0.3 percent to 10,489.15 in a fourth day of gains. The Shanghai Composite Index added 0.2 percent to a one-month high of 2,070.36.

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

To contact the editors responsible for this story: Nikolaj Gammeltoft at ngammeltoft@bloomberg.net Marie-France Han, Richard Richtmyer

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