Chinese stocks traded in New York rose, led by Youku Tudou Inc. (YOKU:US) and Sohu.com Inc. (SOHU:US), on prospects online content companies will benefit from the adoption of faster-speed wireless networks.
The Bloomberg China-US Equity Index of the most-traded Chinese shares in New York added 0.4 percent to 108.14. Online video operator Youku climbed to the highest in two weeks while web portal owner Sohu rose to a one-month high. SouFun Holdings Ltd., the nation’s biggest real-estate website owner, fell after it proposed to sell convertible bonds.
China Mobile Ltd. (941) and two smaller domestic carriers won state approval yesterday to start commercial service on the world’s largest fourth-generation wireless network. The faster network will allow customers to watch videos, scroll the web and play online games on their smartphones, bolstering demand for web companies, Oberweis Asset Management Inc. said.
“The big picture is that when you adopt 4G, it will bring better functionalities and some companies will migrate their online products to mobile products,” Jeff Papp, a Lisle, Illinois-based senior analyst at Oberweis, which oversees $700 million in assets, said in a phone interview yesterday. “People will pay for the mobile traffic.”
The iShares China Large-Cap ETF (FXI:US), the largest Chinese exchange-traded fund in the U.S., climbed 0.5 percent to $39.64. The Standard & Poor’s 500 Index retreated 0.1 percent as investors weighed economic data for clues on the timing of Federal Reserve stimulus cuts and watched budget negotiations.
“Some of the online video companies will benefit significantly,” Papp said. “The adoption of 4G should increase their traffic.”
China Mobile, the world’s biggest phone company, will deploy TD-LTE technology to promote faster downloads as it tries to push customers toward higher-priced voice and data plans. Starting services on a 4G network using global standards may help China Mobile win over handset makers, including Apple, that hadn’t supported its homegrown 3G standard. The high-speed network was scheduled to reach 100 cities covering 500 million people this year.
Youku, based in Beijing, surged 6.3 percent to $29.95, while Sohu added 1.5 percent to $67.38.
SouFun (SFUN:US) slipped 3.6 percent to $73.76, falling from a record high reached the previous day. Shares have gained 195 percent this year. The Beijing-based company is offering as much as $250 million of convertible senior notes due 2018, it said in a statement dated Dec. 3. SouFun plans to use the proceeds for general corporate purposes, including new products and services, business expansion and potential acquisitions, it said.
Hollysys Automation Technologies Ltd., a Beijing-based maker of automation systems, dropped 2.4 percent to $17 in its third day of declines. Trading volume was almost double the average daily level for the past three months.
Melco Crown Entertainment Ltd., the Macau casino venture of entrepreneur Lawrence Ho and billionaire James Packer, rose 1.9 percent to $36.44 and traded at a 2 percent premium to the company’s shares listed in Hong Kong, the widest gap since Nov. 21.
The Shanghai Composite Index climbed 1.3 percent to 2,251.76, the highest since Sept. 12, after the central bank said it plans to implement reform measures for Shanghai’s free-trade zone within three months. The Hang Seng China Enterprises Index, also known as the H-share index, dropped 0.7 percent to 11,368.78.
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