Chinese stocks traded on US markets are posting their biggest monthly gain since July 2009 driven by better-than-expected earnings reports from companies like Baidu (BIDU.NASDAQ), Bloomberg reported. The Bloomberg China-US 55 index rose 9.8% this month and hit a two-month high on October 27 as the EU met to forge an agreement on solving its debt crisis. The index, a measure of the most-traded Chinese companies in the US, then retreated 2.2% on October 28 on profit-taking and concerns that the rally had been overblown. Baidu’s stock has gained 35% since September 30, after the company reported an 80% annual increase in third-quarter profits. Analysts also speculate that the country is nearing the end of a period of tight controls on liquidity, after Premier Wen Jiabao said on October 25 that the government will fine-tune economic policies “at an appropriate time.”
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