BLBG:China’s Stocks Rise on Speculation Inflation Rate Will Drop; SAIC Jumps
China’s stocks rose, spurring the biggest gain for the benchmark index in a week, on speculation inflation will decelerate the rest of the year and the nation’s economic growth may sustain earnings.
SAIC Motor Corp. climbed 1.9 percent after the nation’s car sales rebounded in June after dropping the previous month. Anhui Water Resources Development Co. jumped the most this month after Xinhua News Agency reported the government will speed up investment in water projects. China Shenhua Energy Co. led declines among coal companies as raw-material prices fell. China’s pork prices may retreat beginning in July and August, Xinhua reported, after a government report showed consumer prices rose at the fastest pace in three years last month.
“The June inflation number had already been widely expected by the market and its impact will be minor,” said Ling Peng, chief strategist at Shenyin & Wanguo Securities Co. in Shanghai. “Inflation may have already peaked.”
The Shanghai Composite, which tracks the bigger of China’s stock exchanges, rose 4.92 point, or 0.2 percent, to 2,802.69 at the 3 p.m. close. The CSI 300 Index (SHSZ300) added 0.1 percent to 3,113.21.
--Zhang Shidong. Editor: Allen Wan
To contact Bloomberg News staff for this story: Zhang Shidong in Shanghai at +86-21-6104-3040 or szhang5@bloomberg.net
To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net
