China Stocks Rally on Weak Trade Data

China’s stocks pared the biggest weekly slide in five years as weak trade data spurred bets on further economic stimulus and investors speculated a link between exchanges in Shenzhen and Hong Kong will start this year.

Shenzhen-based technology companies led gains, with Digiwin Software Co. and Wangsu Science & Technology Co. jumping more than 5 percent. Suning Commerce Group Co. surged by the 10 percent daily limit after the State Council said it will promote the development of E-commerce companies to bolster the economy. Friday’s data showed overseas shipments fell 6.2 percent in April, compared with the estimate for a 0.9 percent gain.

The Shanghai Composite Index rebounded 1.5 percent to 4,175.52 at 11:07 a.m., set to end a three-day, 8.2 percent loss. The unexpected slide in exports will put more pressure on the central bank to add to stimulus after two cuts in interest rates and reserve-requirement ratios each since November.

Bloomberg

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