Chinese stocks rose for a fourth week, led by brokerages and commodity producers, as funds continued to pour into equities amid optimism the government will do more to boost economic growth.
Guoyuan Securities Co. rose 6.3 percent on a plan to sell new shares in a private placement. Hebei Iron & Steel Co. jumped by the 10 percent daily limit. China Vanke Co. slid 1 percent after saying profit fell as much as 61 percent in the first quarter from a year earlier.
The Shanghai Composite Index gained 1 percent to 3,863.93 at the close, its highest since March 2008 and capping a 4.7 percent weekly advance. The measure has jumped 89 percent over the past 12 months, while the outstanding balance of margin debt on the Shanghai Stock Exchange has climbed almost fourfold to surpass 1 trillion yuan ($161 billion), on speculation of further stimulus.
“With further policy catalysts and fund inflows, the market looks healthy,” Dai Ming, a fund manager at Hengsheng Asset Management Co., said in Shanghai. “There may be some profit-taking following the recent gains, but declines will be short-lived.”
The CSI 300 Index gained 1.1 percent. China’s market will be shut on April 6 for a holiday. Hong Kong’s markets are closed until April 8.
Trading volumes on the Shanghai index were 19 percent higher than the 30-day average Friday, according to data compiled by Bloomberg. The measure is valued at 14.7 times 12-month projected earnings, its highest level since November 2010,2, according to data compiled by Bloomberg.
Measures tracking financial and material stocks rose more than 1.4 percent, the most among the 10 industry groups on the CSI 300.
Guoyuan Securities climbed to its highest close since January 2008 after the board approved a plan to sell up to 400 million shares in a private placement. Angang Steel Co. added 2.5 percent, while Maanshan Iron & Steel Co. rose 2.3 percent.
China Vanke fell for a fourth day. First-quarter net income may be between 600 million to 700 million yuan, compared with 1.53 billion yuan year ago, according to a preliminary earnings statement to Hong Kong stock exchange.
A gauge of energy shares retreated 0.2 percent. Shaanxi Coal Industry Co. lost 2.1 percent. Crude oil futures declined after Iran and world powers said they reached an outline accord that keeps them on track to end a decade-long nuclear dispute.
The Shanghai Composite’s relative-strength index, measuring how rapidly prices have advanced or dropped during a specified time period, was above 70 for a 14th day, signaling shares may be poised to fall.
The securities regulator approved 30 initial public offerings for April. The China Securities Regulatory Commission gave permission to 11 companies to sell shares in Shanghai and 19 in Shenzhen, of which 17 plan to list on the ChiNext market of smaller companies, the regulator said on its microblog on Thursday.
— With assistance by Shidong Zhang