China Stocks at Five Year Highs

Chinese stocks rose, with the benchmark index climbing to its highest level since August 2009, after Premier Li Keqiang pledged to take action if economic growth slows too much.

Hundsun Technologies Inc. and Glodon Software Co. surged more than 9 percent as a gauge of technology shares extended its gain this year to 39 percent after Li encouraged the development of e-commerce. China Mobile Ltd. advanced the most in a month in Hong Kong. Huadong Medicine Co. jumped by the 10 percent daily limit to lead consumer shares higher.

The Shanghai Composite Index climbed 2 percent to 3,440.96 at 1:07 p.m., extending last week’s 4.1 percent increase. Li said Sunday the government will take additional steps if China’s growth, which the government targeted at about 7 percent this year, drifts toward the lower limit of its range and cuts into employment or wages.  “Li’s positive tone on growth bolstered investor confidence,” said Yen Chiu, a trader at Shenwan Hongyuan Group Co. in Hong Kong. “Technology stocks are getting a boost on the economy’s reliance on the sector for growth.”

Bloomberg

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