Aug. 13 (Bloomberg) -- China’s stocks rose for a third day as lenders advanced after Industrial Bank Co. reported a jump in first-half profit and technology companies extended the biggest rally among industry groups this year.
Industrial Bank, part-owned by a unit of HSBC Holdings Plc, surged to a one-month high after net income increased 27 percent and Citic Securities Co. recommended the shares on easing concerns about the economy. Goertek Inc., a supplier to Apple Inc. jumped to a record high. Tasly Pharmaceutical Group Co. led declines for health-care companies with a 1.2 percent retreat.
The Shanghai Composite Index advanced 0.2 percent to 2,106.16 at the close. The gauge jumped 2.4 percent yesterday to a two-month high after new yuan loans topped estimates in July and money supply unexpectedly accelerated. Data earlier last week showed industrial output and exports improved. The Shanghai index is still down 7.2 percent in 2013.
“Decent economic data helped spur the recent rally,” said Wang Zheng, Shanghai-based chief investment officer at Jingxi Investment Management Co., which manages $120 million. “But concern remains over the sustainability of the rebound in the economy. Gains in stocks may not last long.”
The CSI 300 Index advanced 0.3 percent to 2,359.07. The Hang Seng China Enterprises Index surged 2.4 percent.
Trading volumes in the Shanghai Composite were 22 percent higher than the 30-day average, while 50-day volatility was at 23.6 after yesterday reaching the highest level since January 2011. The index is valued at 8.5 times 12-month projected earnings, compared with the five-year average of 12.7 times, data compiled by Bloomberg show.
Chinese stocks are attractive as the risk of a sudden slump in the world’s second-biggest economy is receding and valuations trail other markets, according to Baring Asset Management Ltd.
“China’s overall market is stabilizing, relieving concerns regarding the hard landing scenario for the rest of this year,” said Agnes Deng, head of Hong Kong and China equities at Baring, which manages $57.4 billion globally. “China stocks’ valuation is quite cheap and attractive.”
Industrial Bank rose 4.5 percent to 10.32 yuan after saying first-half net income increased to 21.6 billion yuan from a year earlier. Banking stocks may rise 20 percent as concerns about economic growth and financial risks ease, analysts led by Zhu Yan at Citic Securities wrote in a report today.
The brokerage recommended Industrial Bank, China Minsheng Banking Corp. and Bank of Beijing Co. Minsheng Banking rose 1.8 percent to 9.05 yuan, while Bank of Beijing added 0.5 percent to 7.69 yuan.
The technology gauge rose the most among 10 industry groups on the CSI 300, bringing its gain this year to 41 percent. Goertek surged 5.9 percent to 44.55 yuan. Apple, which jumped 2.8 percent yesterday, will unveil a new iPhone at a Sept. 10 event, according to a person familiar with the plans.
Anhui Conch Cement Co., the nation’s biggest cement producer, gained 2.3 percent to 16.61 yuan. Gansu Qilianshan Cement Group Co. added 3.1 percent to 7.58 yuan. China’s average cement price increased 0.85 percent last week, while output rose 9.1 percent in July from a year ago, China Merchants Securities Co. said in a report yesterday.
Angang Steel Co. advanced 3.6 percent to 3.19 yuan. Hebei Iron & Steel Co., the listed unit of China’s biggest steelmaker, gained 1 percent to 1.95 yuan. Steel prices have rebounded recently on rising demand, Changjiang Securities Co. said in a report dated yesterday.
A measure of health-care shares retreated 0.5 percent. Tasly Pharmaceutical fell 1.2 percent to 44.30 yuan, paring its 2013 gain to 60 percent.
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