SAIC gains week's most as GM lifts China forecast

SAIC Motor Corp. has gained the most in a week in Shanghai stock market trading after US partner General Motors increased its forecast for full-year China sales, Bloomberg reported Thursday.

SAIC, the biggest automaker in China, advanced 6.7 percent to 18.55 yuan a share in Shanghai yesterday, the most since August 26. Chongqing Changan Automobile Co., a partner of Ford Motor Co., jumped 7.4 percent in Shenzhen trading.

GM said yesterday its sales in China may rise more than 40 percent this year after sales in August more than doubled from a year earlier. Changan Ford Sales Co. also doubled sales last month after China cut vehicle taxes to spur demand.

GM and its two Chinese ventures, both part-owned by SAIC, sold 152,365 vehicles last month. Changan Ford's August sales rose to 21,127 vehicles.

The Shanghai stocks benchmark index today climbed by 130.05, or 4.8 percent, to 2,845.02 at the close, the biggest gain since March 4, on speculation China's regulators will boost the nation’s equities following declines in the past month.