“China’s stocks rose the most in two months before a report that may show manufacturing expanded and as Market Studies LLC’s Tom DeMark said Shanghai’s equity index will rally as much as 28 percent by September.
China Citic Bank Corp. climbed by the 10 percent daily limit, leading a 4.7 percent surge in the gauge of financial companies on the CSI 300 Index. (SHSZ300) FAW Car Co. (000800) paced gains by automakers after Xinhua News Agency said the government ordered the company’s vehicles. DeMark said yesterday the Shanghai Composite (SHCOMP) Index will resume an advance after falling 8 percent from this year’s peak.
“Recent declines have already priced in investors’ more pessimistic view about economic growth,” said Li Jun, a strategist at Central China Securities Co. in Shanghai. “Given that stocks are still not expensive, a rebound is justified.”
The Shanghai Composite climbed 2.7 percent to 2,317.38 at the close, its biggest gain since Jan. 14. Trading volumes on the index were 10 percent higher than the 30-day average, while 30-day volatility increased to the highest level since February 2012. The CSI 300 rose 3.4 percent to 2,610.17. The Hang Seng China Enterprises Index (HSCEI) rallied 2.2 percent inHong Kong after falling 12 percent from its Feb. 1 high through yesterday….”
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