China Stocks Rise for Third Day; Vanke, Ping An Lead Advance

By Zhang Shidong

June 26 (Bloomberg) -- China's stocks rose for a third day as some investors judged an eight-month slump overdone. China Vanke Co. and Ping An Insurance (Group) Co. led the advance.

The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, gained 26, or 0.9 percent, to 2,995.54 as of 10:03 a.m. local time. Almost four stocks rose for each that declined on the benchmark gauge, which has fallen 49 percent from its Oct. 16 record.

Stocks have slumped amid concern government measures to control inflation will hurt corporate profits. Consumer prices gained 7.7 percent in May, slower than April's 8.5 percent clip.

``The market has already bottomed out and the investment values stand out now,'' said Wu Youhui, a strategist at GF Securities Co. in Guangzhou. ``We've also seen a trend of decelerating inflation growth, which will be positive for the market.''

China Vanke, the country's largest publicly traded real- estate developer, gained 2.7 percent to 9.94 yuan, paring its decline this year to 45 percent. Ping An added 1.4 percent to 51.69 yuan. The stock is still down 51 percent in 2008.

To contact the reporter on this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net