China Stocks Rise After Services Index Jumps to Highest in 2013

Most Chinese companies rose after an

official government report showed service industries expanded at

a faster pace in October. Property stocks declined.

ZTE Corp. and Beijing Zhongke Sanhuan High-Tech Co. surged

more than 4 percent. Zhejiang Beingmate Technology Industry

Trade Co., a maker of baby formula, gained 3.1 percent after its

controlling shareholder bought back shares. Beijing Orient

National Communication Science Technology Co. slid 7 percent

after getting approval for a private placement. China Vanke Co.,

the biggest-listed developer, lost 1.6 percent.

The Shanghai Composite Index fell 0.1 percent to 2,147.95

at 1:03 p.m. local time after rising as much as 0.5 percent.

Five stocks gained for every four that fell. The non-manufacturing Purchasing Managers’ Index (CPMINMAN) rose to 56.3 in October

from 55.4 in September, the National Bureau of Statistics and

China Federation of Logistics and Purchasing said yesterday.

That was the highest level this year and followed faster-than-estimated growth in two manufacturing indexes last week.

“Data over the weekend was all right, so we rose a little

in the morning,” said Mao Sheng, an analyst at Huaxi Securities

Co. in Chengdu.

The CSI 300 Index retreated 0.2 percent to 2,381.47 and the
Hang Seng China Enterprises Index (HSCEI) increased 0.2 percent. The

ChiNext index of smaller companies rose 0.7 percent.

China’s top party officials will meet in Beijing from Nov.

9-12 to map out a blueprint for reform as the country heads for

its slowest growth in more than two decades.

China Blueprint

President Xi Jinping said a blueprint for “comprehensive

reform” will be put forward to the third plenary session of the

Communist Party Central Committee, according to a Nov. 2 report

from the official Xinhua News Agency.

Telecommunications and technology stocks led gains on the

CSI 300 index, advancing at least 1.5 percent. ZTE rose to 15.80

yuan. Beijing Zhongke Sanhuan jumped 5.1 percent to 13.64 yuan.

Zhejiang Beingmate advanced 3.1 percent to 33.50 yuan.

China Vanke fell 1.6 percent to 9.24 yuan. China’s real

estate bubble poses a “danger” to the economy and the

government should combine property controls with economic reform

of land and tax policies, according to a front-page editorial

published by China Securities Journal.

The Shanghai Composite has fallen 5.3 percent this year and

trades at 8.5 times projected profits for the next 12 months,

lower than the seven-year average of 15.4, according to data

compiled by Bloomberg. Trading volumes in the index were 43

percent below the 30-day average for this time of day.

Share Sales

HSBC Holdings Plc and Markit Economics will release a

services PMI for October tomorrow. Their index fell to 52.4 in

September from 52.8 in August. A number more than 50 indicates

an expansion.

China may lift a 12-month ban on new share sales this year

following the party summit, according to the nation’s largest

brokerage by market value. “We still have reasons to believe

that the IPOs may resume before the end of this year, as the

policy meeting ends Nov. 12,” Boming Cheng, president of Citic

Securities Inc., said in an interview in New York, where he was

attending the Chinese Finance Association’s annual conference.

The Bloomberg China-US Index of the most traded Chinese

stocks in the U.S. gained 0.5 percent on Nov. 1. Qunar Cayman

Islands Ltd. and 58.Com Inc. jumped in New York after selling

shares above their price targets, a signal that appetite for

Chinese companies remains unshaken by Muddy Waters LLC’s fraud

allegations against NQ Mobile Inc.

To contact the reporter on this story:

Weiyi Lim in Singapore at

wlim26@bloomberg.net

To contact the editor responsible for this story:

Michael Patterson at

mpatterson10@bloomberg.net

China Stocks Rise After Services Index Jumps to Highest in 2013