Chinese equities advanced the most in a week in New York, led by Yanzhou (YZC:US) Coal Mining Co. and Baidu Inc. (BIDU:US), after a preliminary gauge indicated manufacturing unexpectedly expanded in Asia’s biggest economy.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. climbed 1.6 percent to 96.8 yesterday. Yanzhou, China’s fourth-largest coal mining company, jumped 8 percent to trade at the widest premium over its Hong Kong stock in two weeks. Baidu, owner of China’s largest search engine, rose the most in a week after saying it’s expanding with mobile applications that don’t need to be downloaded. Noah Holdings Ltd. (NOAH:US) fell the most in two months.
China’s manufacturing resumed its expansion this month after shrinking the most in about a year in July. A preliminary purchasing managers index by HSBC Holdings Plc and Markit Economics rose to 50.1 from 47.7, beating all 16 estimates in a Bloomberg News survey. The growth sent West Texas Intermediate crude and copper futures higher in New York yesterday.
“The situation has stabilized thanks to a few bright spots in the economy,” Elena Ogram, who holds Chinese stocks in her $50 million emerging-market portfolio at Bank Bellevue AG, said by e-mail from Zurich yesterday. “It led to restocking in raw materials sectors and hence prices have been rising.”
Computer errors halted trading for three hours on the Nasdaq Stock Market, two days after options markets were roiled by mistaken trades sent by Goldman Sachs Group Inc. The iShares China Large-Cap ETF (FXI:US), the largest Chinese exchange-traded fund (FXI:US) in the U.S., jumped 2.7 percent to $35.79, rising for the first time in four days. The Standard & Poor’s 500 Index advanced 0.9 percent on data showing improvement in global manufacturing and the American labor market.
Yanzhou Coal’s American depositary receipts surged to a two-month high of $8.93. Its ADRs, each representing 10 underlying shares in the Shandong-based company, traded 1.4 percent above (YZC:US) its Hong Kong stock, the biggest premium since Aug. 8. The rally helped reduce Yanzhou’s decline this year to 48 percent.
Aluminum Corp. of China Ltd. (ACH:US), the nation’s biggest producer of the metal, known as Chalco, climbed 4.6 percent to $8.71, rising the most in a week. Chalco has slumped 27 percent so far this year.
“People are viewing rebounding commodity prices and import data as signs that the overall economic activity is improving,” Bellevue’s Ogram said. “Some commodity names were oversold.”
Baidu, owner of China’s most-used search engine, added 2.6 percent to a seven-day high of $139.54 in New York.
Mobile users can access so called “lite apps” for transportation, travel and entertainment information through the company’s search program on smartphones, Baidu’s vice president Li Mingyuan said at a conference in Beijing yesterday. The company’s application store has had 69 million downloads every day as its open platform attracts 700,000 developers, Chairman Robin Li said.
The new product “will bring huge commercial value to Baidu,” 86Research Ltd. said in a note yesterday.
E-Commerce China Dangdang Inc. (DANG:US), an online book retailer, gained 4.4 percent to $9.09, rising the most in a week. Youku Tudou Inc. (YOKU:US), China’s biggest online video website, rallied for a fourth day, advancing 3.2 percent to $23.35.
LightInTheBox Holding Co. (LITB:US), a Beijing-based online retailer of lifestyle goods, tumbled 10 percent to $9.96, taking its three-day decline to 48 percent. The company gained as much as 134 percent after its U.S. initial public offering in June.
Noah Holdings Ltd., which sells wealth-management products for commission, tumbled 7.8 percent to $16.44, sinking the most since June 24.
The Shanghai-based company had surged 37 percent since Aug. 8, when it lifted its 2013 adjusted net income forecast to as much as $55 million, 49 percent more than its May estimate. Noah reported Aug. 21 that second-quarter profit jumped 133 percent from a year earlier while revenue increased 132 percent.
“There’s profit taking after Noah last raised its annual earnings estimate pushed its price up a lot,” Ella Ji, an analyst at Oppenheimer & Co. said by phone yesterday. “There’s no new catalyst from the second-quarter earnings.”
The Hang Seng China Enterprises Index added 1.1 percent to 9,967.77 in its first increase this week. The Shanghai Composite Index (SHCOMP) slipped 0.3 percent to 2,067.12.
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