Perfect World to Dangdang Jump on Data: China OvernightBelinda Cao
Perfect World Co. and E-Commerce China Dangdang Inc. rallied in New York after better-than-estimated Chinese trade data eased concern the world’s second-largest economy is slowing.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. rose less than 0.1 percent to 99.97 as 34 stocks rose while 18 declined. Online games operator Perfect World climbed 4.7 percent while Dangdang, China’s biggest web book retailer, extended gains into a fifth day. Ctrip.com International Ltd. gained before reporting earnings.
China’s export and import growth unexpectedly accelerated in January, defying signs the nation’s economy will slow while fueling speculation that fake shipments are resurfacing. Earlier this month, data showed that two gauges of Chinese manufacturing declined in January to six-month lows.
“Every week you seem to have data that point to one direction or another in a conflicting way,” Clement Miller, a Baltimore-based investment strategist at Wilmington Trust, which manages $79 billion in assets, said by phone yesterday. “First you got the PMI data indicating the rate of expansion has diminished, then the trade data comes out that suggest in fact the economy is actually growing at a nice clip.”
Overseas shipments rose 10.6 percent from a year earlier, the General Administration of Customs said yesterday in Beijing, a pace that may be distorted by false invoices and holidays and compares with the median projection of economists for a 0.1 percent gain. Imports advanced 10 percent, leaving a trade surplus of $31.9 billion, the widest for January since 2009.
Perfect World, based in Beijing, rose to $20.79, the biggest jump in five weeks. It has climbed for five days, the longest rally in a month. Dangdang’s American depositary receipts climbed 4.3 percent to $10.25 in New York, the highest close since Jan. 22. Its five-day advance was the longest since July.
ADRs of China Southern Airlines Co., Asia’s biggest airline by passenger numbers, climbed 4 percent to a three-week high of $18.18. Trading volume was 2.8 times the three-month average compiled by Bloomberg.
Ctrip.com, China’s biggest online travel agency, added 0.2 percent to $41.72, rallying for a fifth day.
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., was little changed at $35.38 yesterday, after surging the most since November the previous day.
The Hang Seng China Enterprises Index in Hong Kong gained 1.4 percent to 9,996.76, the highest level since Jan. 24. The Shanghai Composite Index advanced 0.3 percent to this year’s high of 2,109.96.