China Stocks Advance on Technology Gains

0
157

China Stocks Advance on Technology Gains

China’s shares gained, buoyed by technology and small-firm stocks, on easing of fears that new flotation of shares would divert investments after the government put fewer corporation shares on sale than markets had anticipated.

Leshi Internet Information &Technology co, the most dominant player in the ChiNext index, gained the most in 30 days. Yonyou Software Co. soared 5.4% as a measure of technology stocks added the most among industry groups. Kweichow Moutai Co. and Wuliangye Yibin Co. pulled down stocks for producers of consumer-staples for the second day, plunging as low as 1.9%.

As Bloomberg reports, the Shanghai Composite Index increased 0.2% to 2,008.12 at the close, recovering from a three-week low. China’s regulator of securities said on Monday that the country intended to have about 100 initial public offerings from June up until the end of this year.

Strategist Chen Li of UBS AG said the number of IPOs was less than the 350-400 he had estimated.

“Stocks are rising today because the government finally announced the number of IPOs it is planning to have. This removes the uncertainty in the market and investors can prepare accordingly. Moreover, this amount is smaller than expected,”Everbright Securities’ Zeng Xianzhao said.

**relatedarticle**

The ChiNext added 1.3%, extending its rally for a second day. The CSI300 Index was mostly flat. In Hong Kong, the Hang Seng China Enterprises Index dropped 0.3% as of 3:44 pm.

China Mobile Ltd led gains in Hong Kong, rising 2.4% to its highest point since January 3, after Goldman Sachs adjusted its rating to buy.

Rival China Unicom Hong Kong Ltd, which is rated neutral by Goldman, descended 2.6%, applying the most downward pressure on stocks today.

Great Wall Motor Co Ltd added 1.8% in Hong Kong after late on Monday announcing an agreement to build a factory in Russia. Its shares listed in Shanghai also ascended 0.9%.

To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com