July 13 (Bloomberg) -- China’s stocks rebounded from the biggest drop in seven weeks after the economy expanded more than estimated last quarter, easing concerns the central bank’s policy tightening measures are curbing growth.
Jiangxi Copper Co., the nation’s biggest producer of the metal, surged more than 3 percent after China’s economic growth exceeded estimates. Agricultural Bank of China Ltd. and Shenzhen Development Bank Co. led an advance for financial stocks after forecasting higher profit. Zijin Mining Group Co., China’s largest gold producer, rose to the highest level since April as spot bullion jumped to a record.
“The data suggest China’s economy is growing at a moderate pace but still pretty healthy,” said Zhang Ling, general manager at Shanghai River Fund Management Co. “We’ll focus on inflation figures going forward. If that’s brought under control, growth will pick up again and that’ll be positive for stocks.”
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, climbed 40.9 points, or 1.5 percent, to 2,795.48 at 3 p.m. local time, the most since July 4. It dropped 1.7 percent yesterday. The CSI 300 Index advanced 1.6 percent to 3,106.25, led by commodity producers and consumer companies.
The Shanghai gauge has fallen 0.4 percent this year on speculation the economy may be headed for a so-called hard landing after the central bank raised interest rates five times and the reserve-requirement ratio 12 times since the start of 2010 to tame inflation that reached a three-year high last month.
China’s gross domestic product expanded 9.5 percent from a year earlier, the statistics bureau said in Beijing today, after a 9.7 percent gain in the first quarter. That compared with the median 9.3 percent estimate in a Bloomberg News survey of 18 economists. Industrial production rose a more-than-estimated 15.1 percent in June, the agency said.
--Zhang Shidong. Editor: Allen Wan
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