China’s Stocks Rise Most in Asia on Output, Retail Sales Data

China’s stocks rose the most among Asian equity markets today as the Shanghai Composite Index jumped to a four-week high after factory output and retail sales data beat economists’ estimates.

The Shanghai Composite climbed 1.1 percent to 2,083.77 at the close, with trading volumes exceeding the 30-day average by 86 percent, data compiled by Bloomberg show. Gansu Qilianshan Cement Group Co. led a rally for industrial shares. Bank of Nanjing Co. rose 2.4 percent after BNP Paribas SA increased its stake. FAW Car Co. paced gains for automakers after industry vehicle sales advanced to the highest in almost two years.

Stocks rose even as customs data today showed exports expanded a lower-than-estimated 2.9 percent in November from a year earlier. Industrial production climbed 10.1 percent last month, while retail sales grew 14.9 percent, the statistics bureau said yesterday. Economists in a Bloomberg survey had a median estimate of 9.8 percent growth in industrial production and a 14.6 percent increase in retail sales.

“The economic data really looks good and the export number isn’t as important as industrial output, which contributes more to the economic recovery,” said Wang Weijun, a strategist at Zheshang Securities Co. in Shanghai. “Stocks will continue to go up to reflect the improvement of economic fundamentals.”

The CSI 300 Index rose 1.1 percent to 2,271.05. The Hang Seng China Enterprises Index of Chinese companies traded in Hong Kong gained 0.5 percent. The Bloomberg China-US 55 Index, the measure of the most-traded U.S.-listed Chinese companies, added 0.3 percent on Dec. 7.

Stock Slump

The Shanghai Composite advanced 4.1 percent last week, the most in 13 months, after sinking to the lowest level since January 2009 on Dec. 3. It has fallen 5.3 percent this year, making it the worst-performing major market in Asia, as the slowing economy hurt corporate earnings. The measure trades at 11.5 times reported earnings, compared with 10.8 set on Dec. 3, the lowest since at least 1997, data compiled by Bloomberg show.

Qilianshan Cement gained 1.3 percent to 9.82 yuan. BBMG Corp., a Beijing-based cement maker, rose 3.8 percent to 7.06 yuan. Guangxi Liugong Machinery Co., a Chinese maker of construction equipment, added 2.9 percent to 9.33 yuan.

Fixed-asset investment excluding rural households in the first 11 months of the year rose 20.7 percent, the same pace as in the January-October period, the statistics bureau reported yesterday. Imports were unchanged from a year earlier in November, the customs administration said today in Beijing. That compared with a projection of 2 percent growth in a Bloomberg News Survey.

“The Chinese economy is now in a sweet spot and can stay in the sweet spot” through the first half of 2013, Lu Ting, head of Greater China economics at Bank of America Corp. in Hong Kong, said in a note. “The current macro backdrop should bolster asset prices from equities to commodities.”

Bigger Stake

Bank of Nanjing jumped 2.4 percent to 8.26 yuan. BNP Paribas increased its stake in the bank by 59.4 million shares between Oct. 10 to Dec. 6, according to an exchange statement.

FAW, which makes cars in China with Volkswagen AG, advanced 3.8 percent to 6.91 yuan. SAIC Motor Corp., China’s largest carmaker, added 1 percent to 14.86 yuan. Anhui Jianghuai Automobile Co., a unit of the biggest light-truck exporter, climbed 1 percent to 5.88 yuan.

Wholesale deliveries, including multipurpose and sport utility vehicles, gained 8.8 percent to 1.46 million units last month, the China Association of Automobile Manufacturers said in a statement today. That beat the 1.42 million average estimate of seven analysts surveyed by Bloomberg.

IPO Suspension

The China Securities Regulatory Commission has halted approvals of initial public offerings for two months and will probably extend the ban until at least February as it tries to bolster stocks, the South China Morning Post reported, without saying where it got the information from. IPOs won’t resume before Chinese New Year in February, the report cited unidentified bankers as saying.

Stock funds raised their positions in electronic and property shares over the past three weeks, the China Securities Journal reported today, citing market data. The stock position of actively-managed Chinese funds increased 2.27 percentage points as of Dec. 7 compared with the previous week, it said.

Thirty-day volatility on the Shanghai Composite was at 16.8 today, compared with this year’s average of 16.9, data compiled by Bloomberg show.

— With assistance by Shidong Zhang

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