Nov. 14 (Bloomberg) -- Chinese stocks rose for the third time in four days in New York, as Sina Corp. led rallies among Internet companies after third-quarter profit beat estimates.
The Bloomberg China-US Index of the most traded Chinese stocks in the U.S. added 0.6 percent to 101.75 yesterday. Sina, owner of the Twitter-like Weibo service, and E-House China Holdings Ltd., a Shanghai-based property brokerage, both surged 11 percent. Qihoo 360 Technology Co. climbed the most since August and Phoenix New Media Ltd. rose to a two-week high.
Net income at Shanghai-based Sina more than doubled to $25.4 million, beating the $16.2 million average of nine analyst estimates compiled by Bloomberg. Sina, in which Alibaba Group Holding Ltd. bought an 18 percent stake in April, forecast fourth-quarter sales of as much as $194 million, compared with an analysts’ mean projection of $183 million. Earnings at E-House also surpassed analyst estimates.
“Sina’s revenue guidance and third-quarter sales both beat consensus thanks to the increasing contribution from Weibo,” Echo He, analyst at Maxim Group LLC in New York said by phone. “People may also expect big advertising revenue growth this quarter on other Internet ad platforms, such as Qihoo, because marketing spending from big e-commerce companies like Alibaba is increasing quickly.”
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., dropped 1.1 percent to $36.49 in New York in a second day of declines. The Standard & Poor’s 500 Index climbed 0.8 percent to a record after Macy’s Inc. jumped on better-than-estimated earnings and investors weighed the strength of the economy to assess when the Federal Reserve may scale back stimulus.
Sina’s shares surged to $84.55, rallying the most since January 2012. Trading volume was 4.2 times the 90-day average compiled by Bloomberg.
The company’s third-quarter gross margin increased to 64 percent from 54 percent in the prior three months, which represents “significant” improvement, according to Maxim’s He.
At least five analysts have raised their price estimates for Sina after the company’s third-quarter report on Nov. 12. The average price target of 25 analysts is $92.04, according to data compiled by Bloomberg.
E-House’s American depositary receipts jumped to $11.16, the highest level since May 2011.
The company reported adjusted profit of 20 cents for each ADR, compared with a 14-cent average estimate of analysts surveyed by Bloomberg. It also raised its forecast for 2013 revenue by 11 percent to $700 million, according to its statement yesterday.
Qihoo, a Beijing-based software developer which owns China’s most-used web browser, gained 9.8 percent to $89.38, rallying the most since Aug. 16.
Phoenix New Media’s ADRs advanced 7.2 percent to $10.24, the highest close since Oct. 25.
The Hang Seng China Enterprises Index in Hong Kong tumbled 2.7 percent to 10,276.61, slumping the most since August, while the Shanghai Composite Index sank 1.8 percent to 2,087.94.
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