US MARKETS

China’s 58.com surges after selling shares to big-name investors

Service sector stocks also gain before announcement of Beijing’s 13th five-year plan

PUBLISHED : Monday, 12 October, 2015, 3:41pm
UPDATED : Tuesday, 13 October, 2015, 12:55am

Shares of 58.com, which runs mainland China’s largest online classified advertisements site, surged 3.9 per cent to US$52.31 at midday on Monday in New York, after it raised US$300 million by selling new shares to investors including e-commerce giant Alibaba and global investment firm KKR.

Jumei International, China’s largest online cosmetics retailer, gained 3.3 per cent to US$11.54, while Qunar, a Chinese travel search engine controlled by Baidu, jumped 4.5 per cent to US$36.62, as investors bought up shares in the fast-growing services sector ahead of Beijing’s announcement of its 13th five-year plan late this month that analysts expected to include policies promoting the growth of services industries.

Qunar rival Ctrip, the nation’s biggest online travel agency, gained 2.3 per cent to US$68.80.

New Oriental Education and Technology Group, China’s largest provider of private education, climbed 3.8 per cent to US$22.18.

Meanwhile, the Deutsche X-trackers Harvest CSI300 China A-Shares ETF jumped 3.9 per cent to US34.93, after the Shanghai Composite Index closed 3.3 per cent up on Monday to its highest level in seven weeks after the central bank took steps to inject more liquidity into the slowing economy and on expectation of further government economic stimulus measures in the new five-year plan.

The iShares China Large-Cap ETF tracking Hong Kong-listed Chinese shares edged up 0.23 per cent to US$38.75.