Oct. 23 (Bloomberg) -- China’s stocks rose, led by financial and industrial shares, after Ping An Bank Co. posted a jump in net income and Sichuan province-based companies rallied on a newspaper report on investment projects.
Ping An Bank advanced 4.7 percent after saying profit increased 20 percent in the third quarter. Sichuan Road & Bridge Co. and Sichuan Expressway Co. jumped 10 percent after the Sichuan Daily said the province plans to roll out investment projects worth 4.3 trillion yuan ($705.7 million). China Railway Erju Co. led a rally for rail companies after the value of its projects in the first nine months surged 73 percent.
The Shanghai Composite Index rose 0.6 percent to 2,224.57 as of 9:50 a.m. local time. The CSI 300 Index gained 0.8 percent to 2,464.19. The Hang Seng China Enterprises Index advanced 0.7 percent. The Bloomberg China-US Equity Index fell 0.1 percent yesterday.
The Shanghai Composite trades at 8.7 times projected earnings for the next 12 months, compared with the seven-year average of 15.4, according to data compiled by Bloomberg. The index has rebounded 13 percent from its four-year low on June 27 on speculation the government will take reform measures to sustain long-term economic growth.
China may signal plans to ease the nation’s one-child policy, encourage companies to increase dividend payouts and start pilot programs to reform rural land rights and allow more free-trade zones during next month’s meeting of the Communist Party, according to Bank of America Corp.
There won’t be material reforms of state-owned enterprises nor a major breakthrough in reform of Hukou residency permits, Ting Lu, economist at BofA, wrote in a report.
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