By Chua Kong Ho
Dec. 15 (Bloomberg) -- Hong Kong’s stocks rose, after China said it will increase its money supply next year to bolster growth and on speculation the U.S. will rescue its automakers.
Industrial & Commercial Bank of China Ltd., the nation’s largest bank, gained 2.1 percent. China Cosco Holdings Co., the world’s largest operator of iron-ore and coal ships, and China Shipping Development Co., the nation’s largest oil carrier, climbed more than 8 percent after rates for carrying commodities rose by a record.
The Hang Seng Index gained 534.54, or 3.6 percent, to 15,292.93 as of 10:03 a.m. in Hong Kong. All but one of the measure’s 42 constituents rose. The gauge tumbled 5.5 percent Dec. 12, the biggest decline since Nov. 6, on concern a global recession will deepen after the U.S. Senate failed to agree on an automaker bailout and China’s retail sales grew at the slowest pace in nine months.
The Hang Seng China Enterprises Index, which tracks so- called H shares of Chinese companies, advanced 4.4 percent to 8,260.14.
The White House said it would consider using its $700 billion bank bailout fund to help General Motors Corp. and Chrysler LLC following the Senate’s rejection of an aid package.
China’s M2, the broadest measure of liquidity, including cash and all deposits, will increase 17 percent, the State Council said in a statement yesterday. The government also said it will suspend the issue of three-year central-bank notes and aims to increase lending by banks and other financial companies by 4 trillion yuan in 2009.
The Baltic Dry Index, a measure of commodity shipping rates, advanced for a fifth day, surging 7.5 percent on Dec. 12, the steepest gain on record. The gauge has slumped 91 percent this year as a global recession reduced demand for shipments of goods and commodities.
To contact the reporter responsible for this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net
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