SINGAPORE: China's stocks rose, paring the benchmark index's steepest five-day drop in almost a year, on speculation this week's losses were excessive.
Jiangxi Copper Co. and Yanzhou Coal Mining Co. led a rebound for materials and energy producers. China Cosco Holdings Co., the world's largest operator of dry-bulk ships, jumped the most in two weeks as container shipping rates rose. Industrial & Commercial Bank of China Ltd., the nation's biggest lender, fell 0.5 % after the China Securities Journal said the government may cut the dividend payout ratio of listed banks.
"There could be a short rebound after reaching lows but it's not sustainable," said Wu Kan, Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million. "We need to see better economic numbers and more policy loosening."
The Shanghai Composite Index rose 0.1 % to 2,026.69 at the close. The gauge slid 4.6 % this week, the most since the week ended Oct. 21, 2011, after a report on manufacturing signaled a contraction and escalating tensions with Japan threatened trade.
The CSI 300 Index added 0.1 % to 2,199.06 today while the Hang Seng China Enterprises Index of Chinese companies traded in Hong Kong rose 0.8 %. The Bloomberg China-US 55 Index, the measure of the most-traded U.S.-listed Chinese companies, dropped 1.6 % in New York.
The Shanghai Composite had fallen 7.9 % this year amid speculation concern the government isn't introducing stimulus policies fast enough to counter the slowdown in the economy. The gauge is valued at 9.3 times estimated earnings, compared with the average of 17.5 since Bloomberg began compiling the weekly data in 2006. (Bloomberg/msw)
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