China’s Stocks Rise as Exports Beat Estimates; Baoshan Climbs

China’s stocks rose for the first time in three days, as export data that beat economists’ estimates overshadowed valuations at a seven-month high.

China Cosco Holdings Co., the world’s largest operator of dry-bulk ships, advanced 2.5 percent on speculation rising exports will boost demand for marine transport. Baoshan Iron & Steel Co. climbed 1.2 percent after saying profits probably grew 40 percent in 2012. Xi’an LONGi Silicon Materials Co. and Sinovel Wind Group Co. both jumped by the daily limit, leading a rally for solar and wind power stocks. Coal shares dropped.

“The economic data point to a healthy recovery,” said Wei Wei, an analyst at West China Securities Co. in Shanghai. “However, some investors would like to cash out now to lock in their profits after a decent rally.”

The Shanghai Composite Index rose 0.4 percent to 2,283.66 at the close, after falling as much as 0.3 percent. The CSI 300 Index added 0.2 percent to 2,530.57. The Hang Seng China Enterprises Index of Chinese companies traded in Hong Kong climbed 1.1 percent. The Bloomberg China-US 55 Index added 1.2 percent in New York yesterday.

The Shanghai Composite has surged 17 percent from an almost four-year low on Dec. 3, while the CSI 300 has climbed 20 percent, signaling a bull market, on signs economic growth is picking up. The Shanghai gauge trades at 12.6 times reported earnings, approaching the highest level since June, according to daily data compiled by Bloomberg since 2006.

Trade Data

China Cosco gained 2.5 percent to 4.58 yuan. Cosco Shipping Co., a unit of the biggest shipper, jumped 2.5 percent to 4.15 yuan. China Shipping Development Co., a unit of the second-biggest sea-cargo group, added 1.7 percent to 4.76 yuan.

Exports rose 14.1 percent in December from a year earlier while imports increased 6 percent, the customs office said. The pickup in overseas shipments compares with the 5 percent median estimate in a Bloomberg survey and a 2.9 percent increase the previous month. Imports compare with the median estimate for an increase of 3.5 percent after being unchanged in November.

“We believe both export and import growth have truly bottomed out from lows in mid-2012, but we remain cautious on export growth on uncertainties and weakness in the U.S., euro zone and Japan,” Ting Lu, economist at Bank of America Corp., wrote in a report.

The nation’s trade this year will be “slightly better” than 2012, Zheng Yuesheng, head of the customs administration’s statistics department, said after the release of the data.

Solar Stocks

China is scheduled to release December inflation figures tomorrow, followed by fourth-quarter gross domestic product on Jan. 18. Central bank data released earlier today showed new loans in December were 454.3 billion yuan ($73 billion), trailing the median 550 billion yuan estimate in a Bloomberg survey, while M2 money supply rose 13.8 percent, compared with the median projection of 14 percent.

Average trading volumes on the Shanghai index were up 20 percent from the 30-day average. Thirty-day volatility in the gauge was at 19.3, compared with last year’s average of 17.1.

Baoshan Steel, the listed unit of China’s second-biggest steelmaker, added 1.2 percent to 5.03 yuan. The company said profit may have risen 40 percent in 2012 from a year earlier.

Xi’an LONGi surged 10 percent to 9.24 yuan. EGing Photovoltaic Technology Co. jumped 10 percent to 10.45 yuan. Hareon Solar Technology Co. advanced 6.9 percent to 6.49 yuan.

Polysilicon prices rose 3.4 percent to an average $15.90 per kilogram this week, compared with a 0.2 percent gain last week, according to PV Insights.

IPO Halt

Sinovel Wind, China’s biggest maker of wind turbines, rose 10 percent to 5.91 yuan. Xinjiang Goldwind Science & Technology Co., the second largest, gained 6.3 percent to 5.92 yuan.

China will add 18 gigawatts of wind power capacity and 10 gigawatts of photovoltaic capacity this year, the Xinhua News Agency reported, citing Liu Tienan, head of the National Energy Administration.

The government may announce preliminary results of its anti-dumping probe on polysilicon imported from U.S., European Union and South Korea next month, the China Securities Journal reported today, citing the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.

A measure of coal stocks slid 0.7 percent, the most among the CSI 300’s 10 industry groups. China Bohai-rim steam-coal prices fell 0.16 percent from two weeks earlier to 633 yuan per ton as of yesterday, according to the Qinhuangdao Seaborne Coal Market website.

China Shenhua Energy Co., the nation’s largest coal producer, lost 1.9 percent to 24.88 yuan. Yanzhou Coal Mining Co., the fourth biggest, sank 1.4 percent to 18.09 yuan.

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