By Chua Kong Ho
Dec. 2 (Bloomberg) -- China’s stocks rose as consumer- electronics manufacturers gained for a second day on a government plan to boost demand for their products. Commodity stocks fell on concern a deepening global recession will hurt demand for raw materials.
Gree Electric Appliances Co., a manufacturer of air- conditioners, advanced 3.9 percent on speculation sales of home appliances will increase as the state subsidizes some purchases. GD Midea Electric Appliances Co. climbed 4.9 percent. China Shenhua Energy Co., the nation’s largest coal producer, declined after electricity generation fell last month. China Petroleum & Chemical Corp. fell the most in a week after its parent company warned the refiner will face a “tough market environment.”
“Macroeconomic policy has now fully shifted to stimulating the economy,” Jing Ulrich, chairwoman of China equities at JPMorgan Chase & Co., said in a report. “The coming year will be a challenging one for China’s economy, as the impact of the global slowdown intensifies and the government tries to cushion the domestic downturn with ambitious spending plans.”
The CSI 300 Index, which tracks stocks traded in Shanghai and Shenzhen, gained 4.43, or 0.2 percent, to 1,868.63 at the close, after climbing as much as 1.4 percent and dropping 2.6 percent. About twice the number of stocks rose as fell on the index.
The CSI 300 has declined 65 percent since peaking last October as a global slowdown cut demand for China-made exports. China introduced a 4 trillion yuan stimulus plan last month and cut its key lending rate by the most in 11 years to arrest a faster-than-expected economic decline.
To contact the reporter responsible for this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net
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