BEIJING: China’s stocks climbed the most in a week, led by banks, after regulators said they may allow lenders to enter the brokerage business.
Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp., the nation’s largest lenders, gained more than 4 percent after the China Securities Regulatory Commission said it’s considering allowing banks to apply for securities licenses. Industrial Bank Co. jumped 8.7 percent after people familiar with the matter said the lender has submitted a plan to acquire Huafu Securities Co. Citic Securities Co. paced a decline for brokerages.
The Shanghai Composite Index climbed 1.9 percent to 3,302.41 at the close, erasing a loss of as much as 1.3 percent. The securities business may contribute up to two percent of the banking industry’s net profits if licenses are fully opened, according to China International Capital Corp.
“It’s good for banks for run mixed financial businesses and they will gain an edge over brokerages on capital and client resources,” said Wu Kan, a fund manager at Dragon Life Insurance Co. in Shanghai. “Banks have also dropped a lot over the past few months and they were poised for a technical rebound.”
The CSI 300 Index rose 1.7 percent. Hong Kong’s Hang Seng China Enterprises Index added 0.7 percent at 3:07 p.m., while the Hang Seng Index lost 0.1 percent. The Bloomberg China-US Equity Index fell 1 percent in New York on Friday, tracking losses for U.S. stock gauges after American jobs data spurred traders to bring forward bets on higher interest rates.
