Equities defy contraction in production to hit 7 year high

Stocks on the Chinese mainland rose to a seven-year high on Thursday as a gauge of factory output showed production contracting for a third straight month, boosting speculation that the government will escalate efforts to stimulate the economy.

China Cosco Holdings Co and China Shipping Development Co both jumped by the 10 percent daily limit after the two companies said they plan to form a venture in Singapore.

Fiberhome Telecommunication Technologies Co advanced 2.2 percent after the government said it will accelerate construction of a broadband network.