Chinese Stocks Rise to 7-Week High Rise on Policy Speculation

Chinese stocks rose, driving a benchmark index to a seven-week high, on speculation the central bank may take steps to avoid a deeper slowdown.

China CNR Corp. added 0.9 percent after winning contracts for railway freight cars. Jiangxi Copper Co. and Tongling Nonferrous Metals Group Co. fell as metal prices dropped after U.S. service industries expanded less than projected.

“ There’s expectation and hopes for a rate cut over the weekend,” said Chen Liqiu, a strategist at Jianghai Securities Co. in Shanghai.

The Shanghai Composite Index (SHCOMP) rose 9.9 points, or 0.4 percent, to 2,449.97 at 2:45 p.m. local time after falling as much as 0.5 percent earlier. The gauge is poised for its highest close since March 13. It has gained 2.2 percent this week, headed for the steepest increase since April 13. The CSI 300 Index (SHSZ300) increased 0.7 percent to 2,711.49. The Bloomberg China-US 55 Index (CH55BN), the measure of the most-traded U.S.-listed Chinese companies, lost 1.4 percent at the close in New York yesterday.