BEIJING: China’s stocks rose to a three-week high as a gauge of factory output showed production contracting for a third straight month, boosting speculation the government will escalate efforts to stimulate the economy.
China Cosco Holdings Co. and China Shipping Development Co. both jumped by the 10 percent daily limit after the two companies said they plan to form a venture in Singapore. Goldin Properties Holdings Ltd. and Goldin Financial Holdings Ltd., controlled by billionaire Pan Sutong, plunged by a record in Hong Kong. Fiberhome Telecommunication Technologies Co. advanced 2.9 percent after the government said it will accelerate construction of a broadband network.
The Shanghai Composite Index climbed 1.1 percent to 4,496.10 at the 11:30 a.m. local-time break, heading for the highest close since April 27. The preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was at 49.1 for May, missing analysts’ estimates.
“The worse the data, the more speculation that more monetary stimulus will be coming,” said Wei Wei, an analyst at West China Securities Co. in Shanghai. “The market has a consensus that the economy won’t pick up any time soon so the impact of the economic data isn’t too big.”
