Chinese stocks rose in New York after Alibaba Group Holding Ltd., the country’s largest e-commerce platform, posted a surge in fourth-quarter earnings that underscores the growth prospects of Internet companies.
The Bloomberg index of the most-traded Chinese stocks in the U.S. added 1.2 percent to 99.81 yesterday. Online real-estate portal SouFun Holdings Ltd. gained 7.5 percent while Internet television operator Youku Tudou Inc. rallied the most in a week. 21Vianet Group, Inc., which provides Internet data center services, posted its biggest advance in a month.
Alibaba’s revenue jumped 66 percent, according to a Yahoo! Inc. presentation April 15. China’s annual online spending may double by 2017, data from Internet consulting group iResearch show. The country’s economy expanded 7.4 percent in the first quarter, the weakest growth since September 2012, adding to speculation the government will unveil more stimulus measures.
“Alibaba clearly showed that there’s still strong growth potential in areas like e-commerce,” Jeff Papp, a senior analyst at Oberweis Asset Management Inc., which manages $1.1 billion in assets, said by phone from Lisle, Illinois. “The adoption of e-commerce in China is growing at a rate far faster than it is here in the U.S.”
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., gained 1.2 percent to $35.73 while the Standard & Poor’s 500 Index rose 1 percent as data showed U.S. industrial production increased more than forecast.