- Angela Gonzalez-Rodriguez |
Chinese stocks trading in New York rose for a seventh week in a row thanks to investors support: market expects that the Chinese government may roll out more policies to encourage the economy after corporate earnings trailed analysts’ forecasts.
The Bloomberg China-U.S. Equity Index rose 6.1 percent last week, the biggest five-day gain since October, 2. Vipshop Holdings Ltd. climbed 20 percent to 16.35 dollars per share, the most since March 2014. The stock became one of the two best performing stocks on the ADR gauge.
Fourteen of 18 U.S.-traded Chinese technology companies that have reported financial results for the most recent quarter exceeded analysts’ estimates, according to data compiled by Bloomberg.
Meanwhile, more than half of the 10 industrial companies and two-thirds of the 19 financial firms in the MSCI China Index trailed forecasts.
“The anticipation the Chinese government will ease policy measures again before the end of the year is driving the market,” Ankur Patel, chief investment officer at R-Squared Macro Management LLC, said in an interview with Bloomberg on Friday.
Also positive on the Chinese economy outlook was Gary Greenberg, head of emerging markets at Hermes Investment Management Ltd. Who said that “We view China as not being the disaster that people think.” “What China obviously wants to become is more of a consumer economy,” he added.