Nov. 23 (Bloomberg) -- Chinese stocks traded in New York posted the longest stretch of weekly gains since September as LDK Solar Co. jumped after concern about the solar company’s debt eased.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. rose 1.3 percent to 107.32, capping a two-week rally. LDK, China’s second-biggest maker of solar wafers, climbed 6 percent, the most since Oct. 4. China Southern Airlines Co. gained 18 percent, leading the industry’s stocks higher. NQ Mobile Inc. advanced 12 percent.
LDK received as much as $256 million in new financing through a credit facility in China, according to a Nov. 21 statement. The loan will be used to fund operations in the companies home province of Jiangxi, freeing up cash to pay down debt, the company said. LDK had $2.76 billion of debt as of Sept. 30, the third-most among global peers.
“Ultimately here, the news is positive,” Angelo Zino, an analyst at S&P Capital IQ, said by phone from New York yesterday. “The biggest point to take out of the news is the fact that it appears that LDK will continue to receive favorable lending support from creditors out in China.”
The iShares China Large-Cap ETF, the nation’s biggest U.S.- listed exchange-traded fund, advanced 4 percent for the week to $39.96. The Standard & Poor’s 500 Index added 0.4 percent as investors weighed comments from the Federal Reserve for clues on when the central bank will slow the pace of its bond purchases.
LDK rallied to $1.60, extending this year’s gain to 11 percent. The first drawdown of 200 million yuan was approved and completed Nov. 21. The loan will help it increase production when needed, Sam Tong, LDK’s president and chief executive officer said in a statement.
JinkoSolar Holding Co., based in Xinyu, China, said solar module shipments increased 75 percent from a year ago in the third quarter. Its shares surged 15 percent to $33.89, the most since Sept. 27.
China Southern, Asia’s biggest carrier by passengers, jumped to $21.88, the highest in five months. China Eastern Airlines Co., the nation’s third largest carrier by sales, climbed 18 percent to $21.18, the highest since April.
Authorities may issue airspace rules at the end of the year as the air force allots only 20 percent of airspace to civil aviation, Shanghai Securities News reported on Nov. 20. Beijing’s main airport had the lowest ranking for on-time departures among the 35 busiest airports in June as the military limits airspace use while carriers expand their fleets.
NQ Mobile, the company accused of inflating revenue by short-seller Carson Block’s Muddy Waters Research LLC, surged to $14.15. Oberweis Asset Management Inc. said it doubled its stake in the company to 5.8 percent to become the second-largest shareholder. Altimeter Capital Management LLC and Chinarock Capital Management Ltd. have disclosed stakes greater than 5 percent of shares outstanding earlier this month.
The Hang Seng China Enterprises Index in Hong Kong advanced 7 percent to 11,448.74, the most in nearly two years. The index has gained 0.1 percent this year. The Shanghai Composite Index of domestic shares climbed 2.8 percent to 2,196.38, narrowing its 2013 loss to 3.2 percent.
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