China's Stocks Climb; Coal Producers, Jiangxi Copper, Cosco Lead Advance

Aug 26, 2010 (Bloomberg)

China stocks rose, as coal producers advanced on the prospect of mergers while companies from China Cosco Holdings Co. to Jiangxi Copper Co. climbed after reporting higher earnings.

China Shenhua Energy Co. gained 0.6 percent after Premier Wen Jiabao called for accelerated consolidation of the coal- mining industry. China Cosco, the world’s largest operator of dry-bulk ships, and Jiangxi Copper, the nation’s biggest producer of the metal, rallied at least 1.2 percent. China Life Insurance Co. sank the most in six weeks, limiting gains, after Citigroup Inc. said the company’s profits were “weak”.

"Investors will buy on dips,” said Wu Kan, Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million

"Companies are reporting good earnings and the government probably won’t intensify policy tightening. We are still in a range-bound pattern.”

The Shanghai Composite Index, which tracks the biger of China’s stock exchanges, rose 6.90, or 0.3 percent, to 2,603.48 at the 3 p.m. close. The gauge lost 2 percent yesterday on signs the global recovery is faltering. The CSI 300 Index added 0.3 percent to 2,850.09.