Zhang Shidong of Bloomberg News reports that China’s stocks rose for the first time in eight days on speculation the European debt crisis that has slowed global growth is easing after the region’s leaders agreed to ease repayment conditions for loans to Spanish banks.
China Life Insurance Co. (601628) and Citic Securities Co. led gains for insurers and brokerages on speculation they will benefit from a plan to develop Shenzhen’s Qianhai zone into a financial services hub. Kweichow Moutai Co. paced an advance for consumer staples producers, as Bank of Communications Co. recommended buying shares of companies whose earnings may be sheltered from the slowdown. Europe’s leaders, meeting for a two-day summit in Brussels, agreed to drop requirements that governments receive preferred creditor status on crisis loans to Spain’s banks.
“More fruitful results will come out of the Europe summit and that’ll help to contain the debt crisis,” said Li Jun, a strategist at Central China Securities Co. in Shanghai. “Lower risk premiums are positive for equities.”