China stocks traded in New York posted a second annual gain as NQ Mobile surged to the highest since October and Noah Holdings jumped. The Bloomberg China-US Index of Chinese companies in the United States added 0.9 per cent to 106.05 on Tuesday, extending its advance in 2013 to 6.9 per cent. NQ, the mobile service provider accused by short seller Muddy Waters in October of overstating revenue, rose 5.8 per cent, jumping for a second day after Morgan Stanley said it bought a stake in the company. Wealth manager Noah climbed the most in seven weeks. NQ has soared 24 per cent in the two days since Morgan Stanley, which helped NQ raise capital in the bond market in October, said it bought 5.2 per cent of the company. "When an investment bank takes a position in its own account, it usually bodes pretty well," said Sachin Shah, a merger strategist at Albert Fried. The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the US, rose 1.1 per cent to US$38.37 in New York on Tuesday, paring its 2013 decline to 5.1 per cent. The Standard & Poor's 500 Index surged 30 per cent for the year. NQ climbed to US$14.70, the highest since October 23, the day before Muddy Waters said at least 72 per cent of NQ's revenue was fictitious. The rally might force people who were betting against NQ to cover their short positions, Shah said. Noah soared 8.2 per cent to US$18, the biggest gain since November 11. The rally followed a 14 per cent plunge on Monday, after Caixin magazine reported regulators in mainland China may stop wealth management agents from selling trust products. Qihoo 360 Technology, China's second-largest search engine, gained 1.3 per cent to US$82.05. The company said in a Weibo post it would be among the first to "support" Apple's iPhone 5s this year. American depositary receipts of China Eastern Airlines rose 1.1 per cent to a three-week high of US$19.24. The ADRs traded 2.2 per cent above their Hong Kong-listed H shares. The Shanghai Composite Index ended the year down 6.8 per cent.