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Stocks rise to three-month high as exports rebound

By Bloomberg | China Daily | Updated: 2016-04-14 08:29

Chinese mainland stocks rose to a three-month high, led by materials and energy companies, after the nation's exports rebounded more than expected.

The Shanghai Composite Index advanced 1.4 percent at the close, with more than seven stocks climbing for each one that fell. Overseas shipments in March increased 11.5 percent from a year earlier in dollar terms, compared with a 25 percent slump in February. Yanzhou Coal Mining Co jumped 8.2 percent, leading gains by producers of the fuel, after China International Capital Corp said prices of some coal products will increase on strained supply. Jiangxi Copper Co surged 8.4 percent to pace commodity shares.

The exports data add to signs of an economic rebound, with official figures due on Friday expected to show gross domestic product expanded 6.7 percent in the first quarter. The Shanghai equity gauge has risen 15 percent from a January low on expectations the world's second-largest economy has stabilized, with the measure's 30-day volatility dropping to a one-year low.

"We are in the 'honeymoon period' for economic recovery and in the short term, the economy will for sure rebound as we've seen some improving data, including today's trade numbers," said Dai Ming, a fund manager at Hengsheng Asset Management Co in Shanghai.

The Shanghai benchmark index rose to 3,066.64, its highest close since Jan 8. The CSI 300 Index added 1.3 percent, with gauges of material and energy companies advancing at least 2.4 percent among its 10 industry groups.

Guizhou Panjiang Refined Coal Co and Shanxi Meijin Energy Co surged by the 10 percent daily limit. Shanxi Xishan Coal & Electricity Power Co jumped 5.6 percent. Prices of coking coal are expected to increase amid improving demand from the steel sector, China International Capital Corp analysts wrote in a report on Wednesday.

The Hang Seng Index in Hong Kong advanced 3.19 percent to close at 21,158.71 points, heading for a sixth day of increases, the longest streak in a year. Trading volumes in Hong Kong were 69 percent higher over their 30-day average for the time of day, while those in Shanghai increased 41 percent.

Seasonal factors aided the recovery in March overseas shipments. The weeklong Chinese Lunar New Year holidays fell in February this year, closing factories and curbing shipments. That saw exports tumble last month in US dollar terms from a year earlier, the biggest decline since May 2009.

Many economic indicators improved in the first quarter, Premier Li Keqiang said in a recent meeting with German foreign minister, according to a report last week by China Central Television. The first-quarter GDP report due on Friday will follow an expansion of 6.8 percent in the fourth quarter.

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