“China’s stocks rose the most in a month after companies from Qingdao Haier Co. (600690) to Northeast Securities Co. reported higher profit and a government economist forecast growth will rebound this year.
Qingdao Haier, China’s biggest refrigerator maker, advanced 1.9 percent. Northeast Securities capped its biggest weekly gain in two months. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co. (600111), the largest producer of the metal, paced a rebound for material stocks before the release of earnings today. China Southern Airlines Co., whose profit gets a boost from a stronger yuan, added 2 percent on speculation the currency will gain after the central bank signaled plans to widen a trading band.
“Listed companies will achieve profit growth in the first quarter and that’ll provide support,” said Zhang Qi, an analyst at Haitong Securities Co. in Shanghai. “The slowdown in the economy and expectations about tightening liquidity have already pretty much been priced into stocks.”
The Shanghai Composite Index (SHCOMP) climbed 2.1 percent to 2,244.64 at the close, capping its biggest gain since March 20. It rose 1.7 percent this week. The CSI 300 added 2.8 percent to 2,533.83. The Hang Seng China Enterprises Index (HSCEI) advanced 2.4 percent.
Still, the Shanghai Composite has dropped 7.8 percent from a Feb. 6 high, with losses triggered by concern measures to cool property prices will hurt economic growth. Valuations on the Shanghai gauge are 9.2 times projected 12-month earnings, compared with the seven-year average of 15.8, data compiled by Bloomberg show….”
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