China Stocks Rise To One-Week High; Power Shares Gain

Associated Press

Bloomberg News – June 13, 2012

China’s stocks rose, driving the benchmark index to its biggest gain in a month, on speculation the government will ease monetary policy and increase spending for infrastructure to stem the slowdown in the economy.

Sany Heavy Industry Co. (600031) and Zoomlion Heavy Industry Science & Technology Co. led an advance among machinery makers after the 21st Century Business Herald reported China may relax rules on lending to local government financing vehicles. China Life Insurance Co. and Ping An Insurance Group Co. (2318) gained more than 6 percent on a report that regulators will allow insurers to widen the scope of their investments. Huaneng Power International Inc. (600011) jumped to a one-month high on prospects falling coal prices will reduce the cost of generating power.

“Policy easing will go on throughout the year,” said Li Jun, a strategist at Central China Securities Co. in Shanghai. “Liquidity is improving, which will help boost valuations.”

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