BEIJING: Chinese stocks rose for a second day, with a gauge of technology shares climbing to a record, amid optimism government stimulus measures will buoy the economy and boost earnings.
Yonyou Network Technology Co., a software maker, and Searainbow Holding Corp. jumped more than 9 percent as technology companies advanced. Zoomlion Heavy Industry Science & Technology Co. surged 10 percent in Hong Kong on a plan to buy Italian renewables company Ladurner Ambiente. Ping An Insurance (Group) Co. and Bank of Communications Ltd. dropped more than 1 percent in Hong Kong.
The Shanghai Composite Index climbed 1.7 percent to 4,910.53 at the close, erasing a loss of as much as 0.7 percent. The gauge has rallied 52 percent this year, the most among global benchmark indexes, as the government cut interest rates and margin debt climbed to a record. The measure has recovered all the losses incurred during Thursday’s 6.5 percent rout as volatility rises.
“The new-economy stocks have been the major purchase today as investors believe that their earnings will be solid and faster than those in traditional industries,” said Wu Kan, a money manager at Dragon Life Insurance Co. in Shanghai, which oversees about $3.3 billion. ‘The market will soon test the 5,000-point level.’’
http://www.bloomberg.com/news/articles/2015-06-02/china-s-stock-index-futures-advance-after-benchmarks-surge
