China Shares Rise to Two-Week High as Yuan Weakens for 10th Day

China’s stocks rose to a two-week high as funds flowed back to the equities market after a recent spate of initial public offerings, while the yuan weakened for a record 10th day, bolstering the outlook for exports. Property developers and consumer-discretionary companies led gains.

The Shanghai Composite Index climbed 1.8 percent to 3,579.99 at the close. Poly Real Estate Group Co. jumped by the daily limit before Friday’s data on home prices, while household-appliances maker Midea Group Ltd. advanced to a one-month high. The Chinese currency headed for its longest losing streak since at least 2007. The Hang Seng China Enterprises Index rose 1.3 percent at 3:16 p.m. for its steepest two-day advance since October after the Federal Reserve signaled a gradual pace for future interest-rate increases.

About 2.7 trillion yuan ($ 420 billion) worth of funds has been released back to the market after Monday’s nine IPOs, according to the Securities Times. The Fed’s decision to increase interest rates for the first time in almost a decade signals its confidence in the strength of the U.S. economy and bodes well for Chinese exports, according to Shenwan Hongyuan Group Co.

Source : Bloomberg

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China Stocks Rise to Two-Week High as Yuan Weakens for 10th Day

China’s stocks rose to a two-week high as funds flowed back to the equities market after a recent spate of initial public offerings, while the yuan weakened for a record 10th day, bolstering the outlook for exports. Property developers and consumer-discretionary companies led gains.

The Shanghai Composite Index climbed 1.2 percent to 3,558.65 at 10:08 a.m. Poly Real Estate Group Co. jumped the most in a week before Friday’s data on home prices, while household-appliances maker Midea Group Ltd. advanced to a four-month high. The Chinese currency headed for its longest losing streak since at least 2007. The Hang Seng China Enterprises Index jumped 2.3 percent for its steepest two-day advance since October after the Federal Reserve signaled a gradual pace for future interest-rate increases.

About 2.7 trillion yuan ($ 420 billion) worth of funds has been released back to the market after Monday’s nine IPOs, according to the Securities Times. The Fed’s decision to increase interest rates for the first time in almost a decade signals its confidence in the strength of the U.S. economy and bodes well for Chinese exports, said Gerry Alfonso, a sales trader at Shenwan Hongyuan Group Co. in Shanghai.

Source : Bloomberg

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