“China’s stocks rose for an eighth day, driving the benchmark index to its longest stretch of gains in almost a year. Technology and financial companies climbed, overshadowing losses by energy producers.
Software maker Neusoft Corp. jumped to a nine-month high on a subsidiary’s plan to buy a stake in a joint venture from Royal Philips Electronics NV. Haitong Securities Co. led a rally for brokerages, climbing 3.5 percent on speculation increased demand for A shares will boost profits. China Coal Energy Co. and Datong Coal Industry Co. declined after a seven-day advance drove valuations to the highest level since November 2011.
The Shanghai Composite Index added 0.1 percent to 2,434.48 at the close, the highest since May 8. The eight-day win streak is the longest since the period ended Feb. 28. The index has risen 24 percent from a three-year low on Dec. 3 on signs economic growth is accelerating.
“Economic fundamentals are sound,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million. “Investors who have missed out on the rally are taking advantage of any dips to jump on to the bull- market run.”
The Shanghai gauge is valued at 13.4 times reported profit, the highest level since September 2011, data compiled by Bloomberg show. Chinese companies traded on the mainland were priced yesterday at the biggest premium to Hong Kong-listed counterparts since Oct. 9, according to an index from Hang Seng Bank Ltd….”
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