China Cosco Holdings Co., the nation’s largest operator of dry-bulk ships, jumped the most in 10 months in Shanghai amid speculation the company and its rivals may benefit from rising commodity-freight rates.
The shipping line surged by the 10 percent daily limit to 10.31 yuan at the 11:30 a.m. trading break. In Hong Kong, the company jumped as much as 5.2 percent. China Shipping Development Co. rose as much as 4.6 percent in Hong Kong.
The Baltic Dry Index, a measure of commodity-shipping costs, rose for a seventh day on Aug. 13 in London, as Chinese steel mills revive imports of iron ore. China Cosco had slumped 33 percent in Shanghai this year before today on concern that government efforts to curb property speculation may damp demand for the steelmaking ingredient.
“Investors are buying on the dip as shipping lines have been falling in the past year to really low levels,” said Song Weiya, a Shenzhen-based analyst at Great Wall Securities Co. “Still, the magnitude of the jump today is surprising to us.”
China, the biggest buyer of iron ore, boosted imports of the mineral for the first time in four months in July as mills restocked depleted inventories.
Cosco Shipping Co. surged 8.6 percent to 8.19 yuan in Shanghai. China Shipping Container Lines Co. jumped 8.1 percent to 4.25 yuan in Shanghai and 2.8 percent to HK$2.97 in Hong Kong.
The shipping line surged by the 10 percent daily limit to 10.31 yuan at the 11:30 a.m. trading break. In Hong Kong, the company jumped as much as 5.2 percent. China Shipping Development Co. rose as much as 4.6 percent in Hong Kong.
The Baltic Dry Index, a measure of commodity-shipping costs, rose for a seventh day on Aug. 13 in London, as Chinese steel mills revive imports of iron ore. China Cosco had slumped 33 percent in Shanghai this year before today on concern that government efforts to curb property speculation may damp demand for the steelmaking ingredient.
“Investors are buying on the dip as shipping lines have been falling in the past year to really low levels,” said Song Weiya, a Shenzhen-based analyst at Great Wall Securities Co. “Still, the magnitude of the jump today is surprising to us.”
China, the biggest buyer of iron ore, boosted imports of the mineral for the first time in four months in July as mills restocked depleted inventories.
Cosco Shipping Co. surged 8.6 percent to 8.19 yuan in Shanghai. China Shipping Container Lines Co. jumped 8.1 percent to 4.25 yuan in Shanghai and 2.8 percent to HK$2.97 in Hong Kong.