Bloomberg (31/12) -- Chinas stocks rose, paring this years loss, as the first government approvals for initial public offerings in more than a year sparked a rally in brokerages. Small-company shares fell.
Citic Securities Co. and Haitong Securities Co. climbed at least 1.6 percent on speculation new share sales will bolster earnings. Inner Mongolian Baotou Steel Union Co. jumped 10 percent after its board approved a plan to lift up to 29.8 billion yuan ($4.92 billion) to buy assets. Chengdu Gotecom Electronic Technology Co. and Gansu Dayu Water Saving Group Co. slid more than 4 percent to pace declines for smaller companies.
The Shanghai Composite Index gained 0.9 percent to 2,115.98 at the near, trimming losses in 2013 to 6.8 percent, a third year of declines out of four. Five companies including Neway Valve (Suzhou) Co. and Truking Technology Ltd. were approved by the China Securities Regulatory Commission to raise a combined $353 million from IPO sales. Four of the five companies will be listed on Shenzhens smaller-company boards.
The Shanghai index posted its third annual loss in four years, making it the worst-performing market in Asia. Trading volumes were 21 percent below the 30-day average today, according to data compiled by Bloomberg. The measure trades at 8.2 times projected gain for the next 12 months, compared with the seven-year average of 15.1 times, Bloomberg data showed.