China's ADRs rise in early US trade with Soufun climbing 4 per cent
Most American Depository Receipts of Chinese firms rose in early New York trade on Friday, although the broader US stocks took a breather as government data revealed feeble growth in wages and consumer spending. For October, the market is on track for its strongest showing in four years.
China’s real estate internet portal Soufun Holdings rose 4.1 per cent to US$7.10 in late morning trading, as the country’s ending of its decades-old one-child policy on Thursday led to expectations of demand for more and bigger homes.
The Communist Party’s reaffirmation to boost consumption drove up the ADR price of Qunar Cayman Islands, an online travel services provider, by 6 per cent to US$49.
However, the ADRs of YY, New Oriental Education & Technology Group, and TAL Education Group fell 0.3 per cent, 1.7 per cent and 0.1 per cent respectively.
The Deutsche X-trackers Harvest CSI 300 China A-Shares ETF edged up 0.5 per cent to US$35.60. The iShares China Large-Cap ETF tracking Hong Kong shares fell 0.2 per cent to US$38.30.
Global stock markets have staged a rally in October after sharp declines in August and September that were fuelled by fears over the impact of China’s slowing economy.
Investors attribute the broader stock-market gains to global central banks, which have either talked up the prospect of further stimulus to boost sagging inflation and growth, or delayed interest rate rises that would tighten monetary policy.
