Sept. 5 (Bloomberg) -- Chinese stocks rose for a second day in New York, led by E-House China Holdings Ltd., after President Xi Jinping said the government is committed to solving fundamental problems with the economy.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. added 0.7 percent to 98.13 yesterday, the highest level in seven months. Real-estate brokerage E-House surged 28 percent as property information website SouFun Holdings Ltd. soared to a record in a five-day rally. Yingli Green Energy Holding Co. and Trina Solar Ltd. gained as Deutsche Bank AG said the two panel makers may benefit from growth in the U.S. solar market over the next few years.
Chinese President Xi said the nation would “rather bring down the growth rate” to allow it to adjust the structure of the world’s second-largest economy in a written interview yesterday, according to a transcript distributed by the official Xinhua News Agency. Data this week showed manufacturing strengthened last month, adding to signs that China will meet its 7.5 percent expansion target this year, while China’s new home prices jumped by the most since December.
“They want to send the signal that they want to reform but they don’t want to hurt growth,” Michael Wang, an emerging-markets strategist at Amiya Capital LLP in London, said by phone yesterday. “Over the last month and a half, they’ve loosened controls on the property sector. China’s home prices have accelerated again, quite strongly.”
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., climbed 1.7 percent to a three-month high of $36.85. The Standard & Poor’s 500 Index gained 0.8 percent as a Senate panel voted to authorize a limited military operation in Syria and the Federal Reserve said the economy maintained a “modest to moderate” pace of growth.
E-House’s American depositary receipts surged to $7.93, the highest level since October 2011. Trading volume was almost 10 times the three-month average, data compiled by Bloomberg showed. The ADRs traded 14.8 times its 12-month forward profit, compared with a multiple was 15.6 last September.
SouFun, owner of China’s biggest real estate information website, rose 6.3 percent to a record $50.07 in New York, after soaring 13 percent the previous day. Its five-day rally was the longest rising streak in two months.
New home prices in China jumped 8.6 percent in August, the most since December, Beijing-based SouFun said in an e-mailed statement Sept. 2 after a survey of 100 cities.
E-House’s gains “could be just a catch-up” after SouFun’s “significant” advance a day earlier, Ella Ji, an analyst at Oppenheimer & Co. in New York, said by e-mail yesterday. She has a buy equivalent rating on E-House with a price target of $8.
E-House’s stock “is extremely undervalued,” Eric Brock, a portfolio manager at Clough Capital Partners in Boston, said by e-mail yesterday. “We wouldn’t be surprised if it went private.”
Baoding, China-based Yingli, the world’s biggest solar-panel maker, soared 13 percent to $5.29, the highest price since February 2012. Trina Solar, China’s third-largest panel manufacturer, climbed 5.1 percent to $10.75, also the highest level since February 2012.
Deutsche Bank analyst Vishal Shah said he expects installation growth of 6 gigawatts this year and 8 gigawatts in 2014, according to a note to clients yesterday.
LDK Solar Co., the second biggest maker of solar wafers, jumped 6.8 percent to $1.58, rallying the most in three weeks.
The company, based in Xinyu, China, said it is in talks with noteholders of its 2014 securities to delay interest payments that were due on Aug. 28.
Noah Holdings Ltd., a Shanghai-based company selling wealth-management products for commissions, advanced 7.7 percent to $13.94, increasing the most in three weeks.
The Hang Seng China Enterprises Index slipped 0.2 percent to 10,233.03, sliding for the first time in three days. The Shanghai Composite Index added 0.2 percent to 2,127.62 in its fourth day of advances.
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