Chinese stocks rose for a third day in New York on speculation U.S. lawmakers were making progress toward avoiding a default. Seaspan Corp. (SSW:US) jumped 9.8 percent after scrapping plans for an additional offering.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. added 0.9 percent to 104.68 yesterday, trimming its weekly decline to 0.1 percent. Container-ship operator Seaspan’s jump pared the weekly slide to the biggest since May 2012. Bona Film Group surged 20 percent this week, while web retailer E-Commerce China Dangdang Inc. (DANG:US) posted the biggest slump since August.
House Republicans offered a plan to raise the debt limit and end the shutdown that would require President Barack Obama to accept policy conditions attached to a spending measure, said two congressional aides, who spoke on condition of anonymity. China’s September exports probably grew at the slowest pace in three months, according to the median estimate of 36 economists surveyed by Bloomberg. The government will report economic data from gross domestic product to industrial output next week.
“The market will likely remain volatile until we have firmer details that an agreement on the U.S. debt limit is forthcoming,” Michael Wang, an emerging-markets strategist at Amiya Capital LLP in London, said by e-mail yesterday. “I expect China’s economic data to be largely OK in September but could show a slowing improvement from August.”
The iShares China ETF (FXI:US), the largest Chinese exchange-traded fund in the U.S., climbed 0.6 percent to $38.36 in New York for a second weekly rally. The Standard & Poor’s 500 Index added 0.6 percent for a weekly advance of 0.8 percent.
Seaspan, based in Hong Kong, rallied for the first time in eight days, surging to $21.61.
The company said yesterday it terminated an offering of common shares and convertible notes to raise funds. It had planned to sell 5.7 million shares and $125 million of bonds, according to its statement Oct. 7.
WuXi PharmaTech Cayman Inc. (WX:US), a biotechnology research company based in Shanghai, surged 8.2 percent in a second day of rally to $29.19, after slumping 8.1 percent the first three days of the week. Oppenheimer & Co. lifted its price estimate for Wuxi by 14 percent to $32 in a note dated Oct. 10, citing an improving biotech funding environment in China and the company’s manufacturing potential.
Beijing-based Dangdang, the nation’s biggest online book seller, sank 14 percent this week to $10.28. That was the largest weekly retreat since the end of August.
NQ Mobile Inc. (NQ:US), a mobile-security service provider, dropped 7.4 percent this week to $20.10. It added 2.1 percent yesterday.
The Beijing-based company sold $150 million of convertible notes due 2018 on Oct. 9. The conversion price was about $25.61 per ADR, it said in a statement that day.
“NQ’s convertible bonds sale caused concern about its share value dilution, and also the conversion price wasn’t very attractive,” Jun Zhang, an analyst at Wedge Partners Corp. in Greenwood Village, Colorado, said by phone Oct. 10.
Overseas shipments probably grew 5.5 percent in September from a year earlier, according to the Bloomberg News survey. That would compare with August’s 7.2 percent and 9.8 percent in September 2012. China’s economy may have expanded 7.8 percent in the last three months, a separate survey by Bloomberg showed. The growth rate was 7.5 percent in the second quarter.
Bona Film, based in Beijing, added 3.8 percent yesterday to $6.84, the highest level since March 2011. Its 20 percent weekly jump was the biggest on the China-US gauge.
The Hang Seng China Enterprises Index (HSCEI) gained 0.6 percent this week to 10,580.75, the biggest increase in three weeks. The Shanghai Composite Index jumped 2.5 percent to 2,228.15, rallying the most in a month.
To contact the reporter on this story: Belinda Cao in New York at email@example.com
To contact the editor responsible for this story: Tal Barak Harif at firstname.lastname@example.org