China Stocks Rise Before Legislative Meeting Ends, Economic Data


China’s stocks rose before today’s industrial production data and the closing ceremony of the National People’s Congress.

China Minsheng Banking Corp. led gains for lenders on media reports that banks may be the first batch of companies to take part in a preferred stock trial. Huaneng Power International Inc. paced gains for utility companies. Leshi Internet Information & Technology (Beijing) Co. jumped 2 percent after it said it plans to buy a media company.

The Shanghai Composite Index climbed 0.3 percent to 2,004.27 at 10:03 a.m., while the CSI 300 Index rose 0.6 percent to 2,126.06.

China’s industrial production probably rose 9.5 percent in the January-February period from a year earlier, based on the median estimate of analysts surveyed by Bloomberg News. Output expanded 9.7 percent in December from a year earlier. The economic data, which also includes retail sales, are scheduled to be released at around 1:30 p.m.

The Shanghai index has fallen 5.2 percent this year as an onshore bond default, a weakening yuan and tension between Russia and Ukraine exacerbated worries about the economy.

Official data over the weekend showed the steepest slide in exports since 2009 and the slowest inflation in 13 months, highlighting the challenges for Premier Li Keqiang in achieving this year’s economic-growth target of 7.5 percent. Li is due to speak to the media at 10:30 a.m. after the NPC concludes.

China doesn’t release data for industrial output, retail sales and fixed-asset investment for January or February alone, citing distortions from the weeklong Lunar New Year holiday, whose timing differs each year.

MSCI Inclusion

MSCI Inc. hopes to include A shares in its flagship emerging markets index as early as next year, according to a press release. The index provider has started a consultation on the inclusion of the shares from May 2015, according to the statement.

While this is a positive direction, actual fund inflow may not be “meaningful” in the near term due to the “subdued weight propose,” according to Goldman Sachs Group Inc.

The Hang Seng China Enterprises Index, also known as the H-share index, rose 0.6 percent. It slid 1.6 percent yesterday, bringing losses since a Dec. 2 peak to 19 percent and nearing what some traders consider a bear market.

The Bloomberg China-US Equity Index dropped 0.4 percent yesterday. The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., retreated 0.3 percent.

China Lodging Group Ltd. (HTHT) fell after its first-quarter revenue forecast fell short of analysts’ expectations. Home Inns & Hotels Management Inc. posted the longest slump in five months. China Unicom Hong Kong Ltd., the country’s second-biggest wireless carrier, fell to the lowest level since 2010.