Feb. 27 (Bloomberg) -- Hisense Electric Co. and Sichuan Changhong Electric Co. rose by the daily limit in Shanghai, leading gains by Chinese home appliance makers on speculation measures may be rolled out to bolster buying of electronics.
Shares of Hisense rose 10 percent as of the mid-day break in Shanghai to 19.68 yuan, the highest the stock has been since its listing in 1997. Sichuan Changhong climbed 10 percent to 2.72 yuan, the biggest gain since March 2011. China’s benchmark Shanghai Composite Index gained 0.7 percent.
Investors are anticipating the government will introduce measures that encourage purchases of home appliances after an earlier program giving shoppers as much as 400 yuan in subsidies ended Dec. 31, according to James Hu, an analyst at Capital Securities Corp. The earlier policies were issued in 2009 to bolster domestic consumption as the global financial crisis eroded demand for Chinese exports.
“It may come as early as the National People’s Congress next month,” Hu said by telephone from Shanghai, referring to the annual meeting of the nation’s legislature that’s scheduled to start Mar. 5 in Beijing.
China’s exports fell for the first time in more than two years in January as trade was disrupted by the weeklong Chinese New Year holiday and Europe’s debt crisis hurt demand.
Qingdao Haier Co., China’s largest home appliance maker, climbed as much as 6.3 percent in Shanghai. GD Midea Holding Co. gained as much as 5.5 percent in Shenzhen trading.
Source: http://www.businessweek.com/news/2012-02-27/appliance-makers-surge-on-policy-expectations-shanghai-mover.html
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