Most China Stocks Rise as Technology Shares GainBloomberg News
Most Chinese stocks rose, led by technology and telecommunication companies. A gauge of property developers dropped for a fifth day, the longest stretch of losses since February.
GoerTek Inc., a supplier of Apple Inc., had the biggest gain in two weeks. Fiberhome Telecommunication Technologies Co. climbed 2.9 percent. Inner Mongolian Baotou Steel Union Co. rebounded from its lowest level in three years after winning regulatory review to buy assets from its parent. Poly Real Estate Group Co. and Gemdale Corp. slumped at least 1.4 percent.
The Shanghai Composite Index added less than 0.1 percent to 2,028.04 at the close, capping a four-day, 1.2 percent advance. The gauge slumped to its lowest level in a month last week on concern economic growth is slowing and new share sales will divert funds from existing equities.
“The market is stabilizing after negative news about new share sales,” said Wang Weijun, a strategist at Zheshang Securities Co. in Shanghai. “We expect a mild rebound at this level. Gains of a bigger magnitude aren’t likely unless there is a large-scale loosening of monetary policies.”
Trading volumes in the Shanghai index were 29 percent below the 30-day average, according to data compiled by Bloomberg. Markets in Hong Kong were closed today.
The CSI 300 Index climbed less than 0.1 percent to 2,157.33. The ChiNext index of smaller companies added 1.1 percent. The Shanghai Composite is valued at 7.5 times 12-month projected earnings, compared with the five-year average multiple of 12, Bloomberg data show.
A sub-index of technology companies in the CSI 300 gained 1.4 percent today, the most among 10 industry groups. GoerTek surged 3.2 percent. Apple has jumped 15 percent since April 23, when the company reported a surge in iPhone sales and gave its shareholder payout program a $30 billion boost.
Baotou Steel advanced 7.1 percent. The China Securities Regulatory Commission will review a private share placement by the company to buy mining assets from its parent company, according to an exchange statement.
Poly Real Estate, the nation’s second-largest developer by market value, lost 1.4 percent while Gemdale retreated 2.2 percent.
UBS AG cut its China economic growth forecast for this year to 7.3 percent from 7.5 percent and for next year to 6.8 percent from 7.0 percent, Wang Tao, an economist at the Swiss bank, wrote in an e-mailed research note. Wang cited weaker property activity for the lower estimates and said the government will probably take steps to ease property curbs.
E-House China Holdings Ltd. led a drop in Chinese real-estate companies in the U.S. yesterday amid concern that home sales in the world’s second-largest economy are slowing.
The American depositary receipts of E-House, a real-estate agent, slid as much as 6.1 percent. SouFun Holdings Ltd., which operates a real estate website, sank for the first time in three days. New Oriental Education & Technology Group Inc. tumbled the most on the ADR gauge as Deutsche Bank AG cut it to hold from buy.
New home sales fell 47 percent over the May 1-3 holidays to the lowest level in four years in 54 cities, Centaline Group said in a report this week. The value of China’s residential sales slumped 7.7 percent in the first quarter after money supply grew at the slowest pace on record in March amid an economic slowdown.
— With assistance by Shidong Zhang