Chinese stocks gained, with the benchmark index climbing to its highest level since August 2009, after Chinese Premier Li Keqiang (李克強) pledged to take action if economic growth slows too much and the benchmark money-market rate fell.
Hundsun Technologies Inc (恒生電子) and Glodon Software Co (廣聯達軟件) surged more than 9 percent as a gauge of technology shares extended its gain this year to 40 percent after Li encouraged the development of e-commerce.
China Mobile Ltd (中國移動) advanced the most in a month in Hong Kong. Huadong Medicine Co (華東醫藥) jumped by the 10 percent daily limit to lead consumer shares higher.
The number of advancing stocks was at a record-high. The seven-day repurchase rate slid the most in five weeks, as funds locked up for new share sales returned to the banking system.
The Shanghai Composite Index rose 2.3 percent to 3,449.31 at the close, extending last week’s 4.1 percent increase.
Li said on Sunday that the government would take additional steps if China’s growth, which the government targeted at 7 percent this year, drifts toward the lower limit of its range and cuts into employment or wages.
About 3 trillion yuan (US$479 billion) was set aside for initial public offerings last week, according to the median estimate in a Bloomberg survey of brokerages.
“Li’s positive tone on growth bolstered investor confidence,” said Yen Chiu, a trader at Shenwan Hongyuan Group Co in Hong Kong. “Technology stocks are getting a boost on the economy’s reliance on the sector for growth.”
There were 973 stocks that rose on the Shanghai Composite yesterday, the most since Bloomberg began compiling the data in 1997, while nine fell and 78 were unchanged.
The CSI 300 Index rose 2.4 percent. Hong Kong’s Hang Seng China Enterprises Index added 0.9 percent and the Hang Seng Index gained 0.5 percent. The Bloomberg China-US Equity Index slid 0.9 percent in New York on Friday.
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