Hong Kong H-Shares Head for Biggest Monthly Gain Since November

Chinese stocks listed in Hong Kong headed for their biggest monthly gain since November as automakers led the advance. Kingsoft Corp. dropped after its equity rating was cut by at least three brokerages.

Dongfeng Motor Group Co. rose 1.9 percent after JPMorgan Chase & Co. said it’s much less bearish on carmakers. Belle International Holdings Ltd., a ladies footwear retailer, rebounded 2.3 percent after dropping 5.3 percent the past two days. Kingsoft tumbled 11 percent after China International Capital Corp. was among those that downgraded the software maker’s shares. Shandong Gold Mining Co. slid for a fourth day in Shanghai as bullion prices touched the lowest since February. The Hang Seng China Enterprises Index, also known as the H-share index, rose 0.6 percent to 10,254.70 as of 1:05 p.m. in Hong Kong, headed for a 4.9 percent monthly advance. The city’s benchmark Hang Seng Index climbed 0.4 percent to 23,166.43. The Shanghai Composite Index was little changed at 2,049.54 as more than two shares slid for each that rose. The H-shares index pared its yearly loss to 5.7 percent through yesterday amid speculation the government would prop up the slowing economy. The gauge traded at 7.1 times estimated earnings at the last close, compared with 10.7 on the Hang Seng Index and 16.2 on the Standard & Poor’s 500 Index. Tomorrow is the last trading day this month before a three-day weekend. Source : Bloomberg