Equities surge on outlook for manufacturing

Share prices rose on Thursday in Shanghai, sending the benchmark index to a three-month high, as a jump in the nation's manufacturing gauge spurred optimism the government will meet its economic growth target for this year.

Industrial Bank Co and Poly Real Estate Group Co gained more than 5 percent to lead a rally for lenders and developers. Sinolink Securities Co surged 5.9 percent on speculation new share sales will boost earnings. Ping An Insurance (Group) Co, China's second-biggest insurer, advanced to a three-month high in Hong Kong. A preliminary Purchasing Managers Index from HSBC Holdings Plc and Markit Economics, known as the flash PMI, was at an 18-month high of 52, compared with the 51 median estimate.

The Shanghai Composite Index rose 1.3 percent to 2,105.06 points. The measure jumped to the highest since April 16 on optimism over the economy after the government accelerated spending, allowed some local governments to loosen property curbs and cut reserve requirement ratios for some lenders.