BEIJING: China’s stocks rose for the first time in four days, led by financial and consumer-staples companies, amid speculation recent market losses were excessive and the start of options trading will boost demand for large-cap shares.
China Life Insurance Co. and Western Securities Co., which reported a jump in profit last month, surged more than 6 percent to pace gains for insurers and brokerages. Liquor producer Kweichow Moutai Co. jumped 3.2 percent on prospects for increased sales before the start of the Chinese New Year next week. The interest rate for overnight loans on the Shanghai Stock Exchange jumped by the most in a week as planned new share sales boosted demand for funds.
The Shanghai Composite Index added 0.3 percent to 3,085.09 at the 11:30 a.m. break, erasing a loss of as much as 0.9 percent. Mainland stocks fell earlier after data over the weekend showed imports falling by the most in more than five years in January and export growth trailing estimates. A cut in banks’ reserve-ratio requirements this month failed to soothe concern that the world’s second-biggest economy is slowing. Recent data showed manufacturing gauges signaling a contraction, while a gauge of services expanded at the weakest pace in six months.
“The economy isn’t that good but on the other side, we may soon see the central bank loosening monetary policies again,” said Wang Weijun, a strategist at Zheshang Securities Co. in Shanghai. “We are still in a correction.”
