Shares of the following companies had unusual moves in China trading. Stock symbols are in parentheses at the close.
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, gained 1.4 percent to 2,225.43. The CSI 300 Index climbed 1.5 percent to 2,461.61.
Citic Securities Co. (600030 CH) gained 4.7 percent to 12.63 yuan, the biggest advance since April 18. Ping An Insurance Group Co. (601318 CG) increased 2.4 percent to 45.74 yuan. Bank of Ningbo Co. (002142 CH) advanced 3.4 percent to 9.98 yuan. Chinese financial index including banks, brokerages and insurers on the CSI 300 rose 2 percent, the most since May 17, the second-biggest gain among 10 groups in Shenzhen.
China will make Qianhai, part of the Shenzhen economic zone, a test ground for freer yuan usage and capital account convertibility, the National Development and Reform Commission said today. Officials are seeking to develop Qianhai into a financial service hub. Financial stocks are also better valued and insurers’ May income is improving, Xie Jiyong, analyst at Capital Securities Corp., said in phone interview in Shanghai. The financial index trades at multiple of 8.5 times, compared to CSI 300’s 12.2 times.
Kweichow Moutai Co. (600519 CH), the largest maker of baijiu liquor, advanced 1.3 percent to 239.15 yuan. Wuliangye Yibin Co. (000858 CH), the second biggest, gained 2.4 percent to 32.76 yuan. Bank of Communications Co. recommended buying shares of “defensive” companies whose earnings may be sheltered from the slowdown.
BYD Co. (002594 CH) lost 2.7 percent to 19.86 yuan. The automaker backed by investor Warren Buffett said 477.2 million shares will become tradable on July 2.
-- Editor: Allen Wan