BEIJING: China’s stocks rose, sending the benchmark index to a six-week high, as credit growth topped estimates and investors speculated the government will accelerate reforms of state-owned companies.
China Construction Bank Corp. and Bank of China Ltd. gained at least 3.6 percent. 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 3 percent after saying its controlling shareholder plans to inject assets. PetroChina Co., the largest energy producer, surged the most in a month.
The Shanghai Composite Index advanced 1.8 percent to 3,349.32 at the close, the highest since Jan. 27. Aggregate financing was 1.35 trillion yuan ($215.5 billion) in February, above the estimate of 1 trillion yuan. New yuan loans totaled 1.02 trillion yuan and M2 money supply rose 12.5 percent. The data suggest monetary easing is spurring demand for loans.
“The loan data signal the PBOC is loosening monetary policies more actively to aid the economy,” said Yan Liu, a Shenzhen-based trader at Guosen Securities Co. “Sentiment is getting warmer again as financial shares lead the rally. They should continue to fare well on sustained monetary easing.”
