BEIJING: China’s stocks climbed to the highest level since March 2008 as an unexpected drop in exports spurred speculation that authorities will increase stimulus to support economic growth.
China Merchants Bank Co. climbed to a five-year high after resuming trading and announcing plans to sell shares. Almost all foreign-currency B shares traded on mainland exchanges gained by the 10 percent daily limit. Sa Sa International Holdings Ltd. led a slump by Hong Kong retailers after China limited visitors to the city.
The Shanghai Composite Index climbed 1.4 percent to 4,087.96 at 11:16 a.m. The gauge has jumped 73 percent in the past six months, the most among 92 benchmark indexes globally; on speculation the government will take measures to bolster growth. Data today showed overseas shipments fell 14.6 percent in March from a year earlier in yuan value, while imports also slumped 12.3 percent.
“The trade figures aren’t good but that’ll lead to market expectations of more stimulus,” said Wu Kan, a money manager at Dragon Life Insurance Co. in Shanghai, which oversees about $3.3 billion. Investors piled into B shares after they lagged behind gains in A shares, he said.
