China Stocks Rise; Nanjing Textiles Gains on Stimulus Report

By Zhang Shidong

Feb. 3 (Bloomberg) -- China’s stocks rose for a second day, taking the benchmark index to the highest in seven weeks. Youngor Group Co. and Nanjing Textiles Import & Export Corp. led textile makers’ gains on speculation the government will support the industry.

Youngor Group, China’s biggest maker of men’s clothing by sales, and Nanjing Textiles rose more than 5 percent after Shanghai Securities News said a stimulus plan for the textile and machinery industries will be submitted to the nation’s Cabinet for discussion tomorrow.

The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, rose 19.98, or 1 percent, to 2,031.67 as of 10:39 a.m. local time, set for the highest close since Dec. 10. The CSI 300 Index gained 1.2 percent to 2,082.09.

“The market has heightened expectations that more measures and policies will come along to boost economic growth and various industries,” said Zhang Ling, who manages the equivalent of $1.1 billion at ICBC Credit Suisse Asset Management Co. in Beijing.

The Shanghai Composite Index, the world’s second-best performer this year, has rebounded 17 percent since the government pledged 4 trillion yuan ($584 billion) of spending to revive economic growth. The central bank has also cut the key lending rate five times since September to support industries and stem job losses.

Youngor Group

Youngor Group advanced 5.3 percent to 8.94 yuan. Nanjing Textile gained 5 percent to 4.24 yuan. Shenzhen Textile (Holdings) Co. jumped by the maximum 10 percent daily cap to 5.89 yuan. Luthai Textile Co., a textile maker in the eastern province of Shandong, added 6.7 percent to 7.50 yuan.

The plan may include raising export rebates for textile companies to as much as 17 percent, Shanghai Securities News said. The current rate is 14 percent. The plan may provide support to help develop the machinery industry, reducing reliance on imports, the report said.

Changsha Zoomlion Heavy Industry Science & Technology Development Co., China’s second-biggest maker of concrete- handling machinery, advanced 2.2 percent to 15.92 yuan. Xuzhou Construction Machinery Science & Technology Co., the publicly traded unit of China’s biggest building equipment maker, rose 1.9 percent to 19.65 yuan.

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