http://www.bloomberg.com/news/articles/2016-08-12/china-stocks-set-for-biggest-gain-in-a-month-as-developers-rally-irrepp6g
Chinese stocks rallied the most in a month as stake purchases by China Evergrande Group fueled optimism that the pace of merger activity in the property industry will accelerate. The Shanghai Composite Index closed 1.6 percent higher, with almost all the gains coming after the midday break. The benchmark gauge of real estate companies surged 4.7 percent, the most since March 2, as Langfang Development Co. and China Vanke Co., both targets of billionaire Hui Ka Yan’s Evergrande, jumped by the daily 10 percent limit.
The Shanghai Composite ended the day at 3,050.67. The Shenzhen Composite Index rose 1.2 percent, while the ChiNext gauge of small-cap companies added 1 percent. Poly Real Estate Group Co. climbed 7.7 percent in Shanghai and Gemdale Corp. surged by the 10 percent daily limit. Greenland Holdings Group Corp. jumped 10 percent.
China Film Co., the nation’s largest distributor of movies, jumped by the 10 percent limit in Shanghai. The stock has surged 91 percent following its debut this week, pushing its market value to $4.8 billion and making it bigger than the likes of DreamWorks Animation SKG and Lions Gate Entertainment Corp.
China’s broadest measure of new credit increased less than expected. Aggregate financing was 487.9 billion yuan ($73.4 billion) in July, compared with the median estimate of 1 trillion yuan in a Bloomberg survey of economists. New yuan loans were at 463.6 billion yuan, versus a projected 850 billion yuan, People’s Bank of China data showed Friday after close of markets.
