China Stocks Extend Weekly Gain as Rail, Bank Shares Gain
China’s stocks rose, extending the benchmark index’s gains to a third week, on speculation the government will increase fiscal spending on infrastructure and ease monetary policy to bolster economic growth.
Rail car makers CSR Corp. and China CNR China Corp. jumped more than 3 percent after the China Securities Journal reported railway spending may exceed government targets. Industrial Bank Co. paced gains for lenders after the same newspaper reported that a cut in lenders’ reserve-requirement ratios may be a first option as the government eases monetary policy.
The Shanghai Composite Index rose 0.3 percent to 2,385.57 at 9:49 a.m. local time. The CSI 300 Index added 0.4 percent to 2,607.51, led by industrial and financial companies.
“Investors are quite conflicted now,” said Zhang Han, a strategist at Guotai Junan Securities Co. “The good news is there are expectations for a reserve-requirement ratio cut this weekend after all the noise the entire week. Despite that, company earnings are not fantastic, in line with the slowing world economy.”
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