Oct. 12 (Bloomberg) -- Shanghai Xinhua Media Co. jumped 10 percent, leading a rally for Chinese publishing companies, after Mo Yan won the 2012 Nobel Prize in Literature.
Shanghai Xinhua surged by the daily limit to 6.23 yuan as of 10:08 a.m. local time, on course for the biggest advance since April 7, 2005. Changjiang Publishing & Media Co. jumped 8 percent to 7.55 yuan. Time Publishing & Media Co. climbed 4.8 percent to 11.04 yuan. The benchmark Shanghai Composite index rose 0.6 percent to 2,115.37.
Mo, 57, won the 2012 Nobel Prize in Literature for blending folk tales, history and contemporary life with “hallucinatory realism,” the Swedish Academy said. The son of a coal miner is the second Chinese author to win the prize: Gao Xingjian, who took French citizenship several years before, won in 2000.
“After the Nobel prize win, publishers and distributers are bound to benefit because the sales of Mo Yan’s books will rise,” Zhao Yue, an analyst at Rising Securities Co., said in a phone interview in Beijing. “In the longer term, the country is pushing for an improvement in the cultural sphere, so the outlook for this industry is positive.”
When Gao won the literature prize in 2000, he was denounced by Chinese officials, because he had left the mainland for France. The state-owned Chinese news agency Xinhua reported, “Mo’s win brought joy to his supporters, as no Chinese national has ever won the Nobel prize in literature in its century-long history.”
In 2007, President Hu Jintao said in a speech that China needed to promote its culture at home and abroad. This past February, the Ministry of Culture said it would double the size of China’s culture industry by 2015, to about $140 billion, with an annual growth rate of 20 percent.
-- Editors: Allen Wan, Ravil Shirodkar
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