Chinese Stocks Rise as Industrial Companies Jump With Brokerages
(Bloomberg) -- Chinese stocks rose as industrial companies jumped on prospects the government will boost spending on railways to bridges, while optimism the start of a Shenzhen-Hong Kong exchange link is imminent lifted brokerages.
The Shanghai Composite Index climbed 0.8 percent at the close. A gauge of industrial shares surged 2.4 percent, the biggest gain since Aug. 15, as China Communications Construction Co. and China Railway Group Ltd. rallied more than 5 percent. Guoyuan Securities Co. rose to its highest level in almost a year to lead financial companies higher.
Industrial, construction and state-owned firms have powered gains in the Shanghai Composite Index in recent weeks as investors bet that the government will favor infrastructure projects and fiscal spending to bolster growth. The nation's official manufacturing gauge rose to the highest in two years last month, led by new orders. The China Securities Depository and Clearing Corp. said this week that it would conduct mock trade tests on Nov. 5-6 for the link, which was unveiled in August.
"The continuation of a recent theme is helping the industrials -- government policy will remain supportive of fiscal spending and infrastructure projects to support growth," said Bill Bowler, a sales trader at Forsyth Barr Asia Ltd. in Hong Kong. "The recent better-than-expected PMI data has validated that."
An index of financial companies on the CSI 300 Index added 1 percent.
"There are expectations that the starting day of the Shenzhen connect will be announced over the weekend, and that's driving the rally on brokerages," said Wu Kan, a fund manager at Shanshan Finance Co. in Shanghai.
To contact Bloomberg News staff for this story: Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net, Zhang Shidong in Shanghai at szhang5@bloomberg.net. To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net, Philip Glamann
With assistance from Zhang Shidong, Kana Nishizawa
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
-
Everything, Everywhere, All At Once: Dalal Street's Week To Forget | Joining The Dots
Visa curbs, a Starlink spat and cancer drug caps: what connects this week's shocks for Indian markets
-
India Is Going Abroad For Critical Minerals. But It May Take Years To Pay Off | The Reason Why
Although India's steps are in the right direction, they remain modest compared with India's growing dependence.
-
When Everyone Has AI, What Gives You An Edge?
India's young workforce is entering an uncertain world of work where powerful AI tools are becoming widely accessible. The advantage will belong to those who combine deep expertise with digital fluency, and the distinctly human capabilities that technology cannot manufacture.
-
Wrong Labels, High Pesticide Residues Holding Back Agri Exports | The Reason Why
India needs stronger domestic food-safety and labelling standards, with best practices becoming part of everyday business for farmers, traders and food companies.
