China Stock-Index Rises for 4th Day as Trade Data Beat Estimates

By Weiyi Lim 

China’s benchmark stock-index rose for a fourth day after the nation’s trade expanded more than economists estimated.

SAIC Motor Corp. led gains for consumer-discretionary companies as Bank of America Corp. said a jump in import growth signaled domestic demand was recovering. China CNR Corp. and CSR Corp., the two biggest trainmakers, climbed at least 1 percent as the China Securities Journal reported Xinjiang province plans 16.8 billion yuan ($2.7 billion) of rail investment. Haitong Securities Co. paced declines for brokerages after reporting profits fell. Chinese exports surged 14.7 percent in April amid investigations into the reliability of trade data. “Investors were happy about the export data but they are staying cautious ahead of producer-price data, bank loans and all the other data slated to be out soon,” Xu Shengjun, analyst at Jianghai Securities Co. in Shanghai, said by phone.

The Shanghai Composite Index (SHCOMP) rose 0.3 percent to 2,241.54 at the 11:30 a.m. local-time break, even as four stocks fell for every three that gained. The index headed for the highest level since April 22. CSI 300 Index added 0.4 percent to 2,539.78. The Hang Seng China Enterprises Index (HSCEI)rose 1.1 percent.

The Shanghai Composite has slumped 7.9 percent from a Feb. 6 high on concern slowing economic growth is hurtingearnings. The index trades at 9.2 times estimated earnings, compared with the seven-year average of 15.7, according todata compiled by Bloomberg. Trading volumes on the measure were up 3.8 percent from the 30-day average.

Economic Data

Imports advanced 16.8 percent last month, exceeding analysts’ estimates for 13 percent growth, while the trade surplus was a higher-than-projected $18.2 billion, data from the General Administration of Customs showed. April exports compared with a gain of 9.2 percent in the median forecast of analysts surveyed by Bloomberg News and 10 percent in March.

“The real situation for China’s exports may not be good as the new export order component” dropped, Ting Lu, China economist at Bank of America, wrote in a report today. “Meanwhile, some import data send encouraging signs that domestic demand is on track to a recovery.”

Consumer companies reliant on growth in the economy advanced. SAIC Motor, the nation’s biggest automaker, rose 4.1 percent to 16.17 yuan. Great Wall Motor Co. surged 2.2 percent to 38.20 yuan, heading for a record close. Gree Electric Appliances Inc. gained 1.7 percent to 27.17 yuan.

China CNR advanced 1.4 percent to 4.30 yuan. CSR Corp. increased 1 percent to 4.12 yuan. Xinjiang is planning the rail investment for this year, the China Securities Journal reported, citing the region’s Development and Reform Commission.

Brokers Drop

Haitong Securities, the second-biggest Chinese brokerage, slid 1.3 percent to 10.97 yuan after reporting profit of 403.7 million yuan last month, down from March’s 435.7 million yuan. Citic Securities Co., the largest brokerage, dropped 1.6 percent to 12.61 yuan.

The government is due to report inflation data tomorrow. Consumer prices gained 2.3 percent from a year earlier in April, below a government assumption for 2013 of 3.5 percent, following a 2.1 percent advance in March, a Bloomberg survey of 40 economists shows.

The Bloomberg China-US 55 Index, the measure of the most- traded U.S.-listed Chinese companies, added 1 percent in New York yesterday. The iShares FTSE China 25 Index Fund climbed 1.1 percent. Baidu Inc., owner of China’s most-used online search engine, rose to a one-week high on prospects Internet video acquisitions will bolster its mobile presence.

-- Editors: Allen Wan, Ravil Shirodkar

To contact the reporter on this story: Weiyi Lim in Singapore at wlim26@bloomberg.net;

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