BEIJING: China stocks index capped its first weekly gain in a month as funds tied up in bidding for initial public offerings were returned to investors.
Shaanxi Coal Industry Co. and Jiangxi Copper Co. led gains for energy and commodity stocks after oil and copper prices rebounded. State-owned companies Shanghai Jinfeng Investment Co. and Beijing Huaye Real Estate Co. advanced more than 7 percent after the Economic Information Daily reported the government may announce a reform plan for SOEs next month.
The Shanghai Composite Index climbed 1 percent to 3,203.83 at the close for a fifth day of gains. Twenty-four companies in total marketed their IPO shares this week, which a Bloomberg survey showed probably froze 2.05 trillion yuan ($328 billion).
“Some funds are coming back to the market after the IPO subscription period as investors are still betting that stocks will rise after the Chinese new year,” said Wei Wei, an analyst at West China Securities Co. in Shanghai. “There could be some big progress on SOE reforms next month so investment in the theme has become very active.”
The Shanghai measure jumped 4.2 percent this week, as consumer companies rallied before the week-long Chinese new year holiday that starts on Feb. 18 and weak economic data boosted odds of more monetary easing.
