Bloomberg
(05/11) – China’s stocks rose as agricultural companies rallied on
speculation the government will introduce reforms to boost the industry.
Technology shares climbed after falling the second most among 10
sectors in the past month. Heilongjiang Agriculture Co. and
Zhongken Agricultural Resource Development Co. jumped by the daily limit
of 10 percent. Leshi Internet Information & Technology (Beijing)
Co. surged 8.8 percent to lead gains for the ChiNext index of
small-company shares. Industrial Bank Co. and Bank of Beijing Co. slid
at least 1 percent as the banking regulator urged lenders to handle
credit risks in industries with overcapacity problems.The
Shanghai Composite Index rose 0.4 percent to 2,157.24 at the close,
erasing a loss of as much as 1.2 percent. Premier Li Keqiang was cited
by the Xinhua News Agency as saying it’s very important to make farmers
wealthy and reforms are needed for the development of modern
agriculture. Policy makers, planners and government advisers are
drafting proposals on how to implement Li’s urbanization vision that
will be presented to the Communist Party’s top leaders at a meeting from
Saturday. The CSI 300 Index advanced 0.1 percent to 2,383.77
today, while the ChiNext rallied 3.1 percent and the Hang Seng China
Enterprises Index (HSCEI) slid 0.4 percent. The Shanghai index has
fallen 4.9 percent this year and trades at 8.5 times projected profits
for the next 12 months, lower than the seven-year average of 15.3,
according to data compiled by Bloomberg. Trading volumes for the index
were 30 percent below the 30-day average, data showed.
