BEIJING: Chinese stocks rose for a second day, led by banks, on speculation the government will further ease monetary policy to support the economy and accelerate reforms of state-owned companies.
China Construction Bank Corp. and Bank of China Ltd. gained at least 3 percent, while Industrial Bank Co. jumped 9.6 percent after indicating that it will move into the securities business as soon as regulators allow. State-owned Shanghai Electric Group Co. climbed 4.8 percent after saying its controlling shareholder plans to inject assets.
The Shanghai Composite Index advanced 1.4 percent to 3,335.45 at the 11:30 a.m. break. Brokerages from Barclays Plc to Nomura Holdings Inc. are predicting faster cuts in interest rates and lenders’ reserve-requirement ratios after data yesterday showed industrial output posted its weakest start since 2009 and retail sales missed estimates.
“Monetary easing policies will continue as the economy hasn’t seen a pick-up,” said Wei Wei, an analyst at West China Securities Co. in Shanghai. “Lots of SOE reform plans will probably be out soon and become an investment theme.”
The CSI 300 Index gained 1.4 percent. Hong Kong’s Hang Seng China Enterprises Index rebounded 1.4 percent from its lowest level in almost three months at 11:38 a.m., while the Hang Seng Index added 0.3 percent. The Bloomberg China-US Equity Index retreated 1 percent in New York on Wednesday.
