China’s Stocks Rise for First Time in Five Days; Huaneng Gains

By Zhang Shidong

Nov. 26 (Bloomberg) -- China’s stocks rose for the first time in five days, led by power producers, after a domestic coal-price benchmark fell and Industrial Securities Co. upgraded its rating on the industry.

Huaneng Power International Inc., the listed unit of China’s largest power group, gained 3.4 percent. China Shenhua Energy Co., the nation’s largest coal producer, lost 1.1 percent, on lower prices. Baoshan Iron & Steel Co. advanced 3.9 percent on expectation domestic steelmakers will benefit from BHP Billiton Ltd.’s decision to drop its bid for Rio Tinto Group.

“Lower coal prices will help power companies to turn around,” said Wu Kan, a fund manager in Shanghai at Dazhong Insurance Co., which oversees $285 million. “The drop in coal prices is not over and the industry outlook is deteriorating.”

The CSI 300 Index, which tracks yuan-denominated A shares listed on China’s two exchanges, rose 9.20, or 0.5 percent, to 1,843.50 at the close, ending a four-day, 6.1 percent decline. About four stocks rose for each that fell on the 300-member measure.

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