“China’s stocks rose for the third time in four days after Premier Wen Jiabao pledged to maintain steady economic growth and U.S. housing data bolstered the outlook for exports to the world’s biggest economy.
China Vanke Co. (000002) and Poly Real Estate Co. led gains for real estate companies after the China Securities Journal reported investment funds bought more shares of developers in the first quarter. Jiangxi Copper Co., the biggest producer of the metal, gained 1.8 percent on speculation an improving global economy will spur demand. Xinjiang Goldwind Science & Technology Co., the second-biggest maker of wind turbines, advanced 2.4 percent after profit beat the company’s projection.
“The government has the tools to stem a decline in economic growth and they will act when the situation worsens,” said Li Jun, a strategist at Central China Securities Co. in Shanghai. “Earnings are still a major concern and will limit a rebound. Trading will be range-bound for the time being.”
The Shanghai Composite Index (SHCOMP) rose 18 points, or 0.8 percent, to 2,406.81 at the close. The CSI 300 Index (SHSZ300) added 0.8 percent to 2,625.99. The Bloomberg China-US 55 Index (CH55BN), the measure of the most-traded U.S.-listed Chinese companies, retreated 0.4 percent in New York yesterday.
Thirty-day volatility in the Shanghai Composite was at 18.7 today, near the lowest in a week. About 13.4 billion shares changed hands in the Shanghai Stock Exchange yesterday, or 51 percent higher than the daily average this year…”
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