Chinese stocks had the biggest weekly gain in a month in New York, as Twitter Inc.’s planned initial public offering boosted social-media companies from Sina Corp. to Renren Inc.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. added 1.1 percent to 104.76 yesterday, taking its advance this week to 2.6 percent. Sina, China’s biggest Twitter-like microblogging service, rallied to the highest level since October 2011. Renren posted the biggest weekly advance in more than a year, and YY Inc., owner of a social entertainment website rose 3.1 percent for the week.
Twitter, which has more than 200 million monthly users, made public its S-1 prospectus on Oct. 3 saying it’s seeking to raise $1 billion in an IPO. The documents suggested a valuation of $12.8 billion. Internet companies fueled an 18 percent rally in the China-US gauge last quarter, with stock from NQ Mobile Inc. and E-House China Holdings Ltd. rallying more than 100 percent. Tencent Holdings Ltd., Asia’s largest Internet company, is the second-best performer this year in Hong Kong.
“Twitter’s IPO is a vote of confidence for the social-media industry,” Jay Jacobs, a research analyst at Global X Funds, a New York-based exchange-traded fund that manages $2.3 billion in assets, said by phone. “There’s a big appetite right now for a lot of these social media related names, including China’s Sina, Tencent.”
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., climbed 1.3 percent to $38.01 in New York. The Standard & Poor’s 500 Index added 0.7 percent as optimism grew that lawmakers would reach a deal to end the budget impasse and avoid a default on the federal debt.
Sina, based in Shanghai, climbed 4.7 percent yesterday to $90.48 in New York, the highest since October 2011. It has rallied 10 percent this week, the most in two months.
American depositary receipts of Renren, based in Beijing, surged 5.5 percent to a seven-week high of $4.04. Its 20 percent advance in the week is the biggest since April 2012.
Guangzhou-based YY advanced 2.7 percent to $49.72 yesterday. It climbed to $50.47 on Oct. 2, the highest close since its IPO in November.
The Global X Social Media Index ETF, which tracks 27 social media companies including Facebook Inc. and Tencent, advanced 1.8 percent this week.
Elong Inc., China’s second-largest travel-booking website whose biggest shareholder is Expedia Inc., jumped 30 percent this week to $22.80.
The Hang Seng China Enterprises Index advanced 0.2 percent this week to 10,517.28. Markets in mainland China will remain closed until Oct. 8 for a holiday.