China Stock-Index Futures Drop Before Property, FDI Data

China’s stock-index futures fell before economic data for May including property prices and foreign direct investment.

Futures on the CSI 300 Index expiring in June, the most active contract, lost 0.5 percent to 5,098 as of 9:15 a.m. local time. The Shanghai Composite Index climbed 1.7 percent to 4,967.90 on Wednesday. The gauge has jumped 140 percent in the past 12 months, the most among benchmark global indexes tracked by Bloomberg, amid speculation the government will extend cuts in borrowing costs to boost the economy and as traders borrowed a record amount of funds to buy shares.

The rally for China’s stocks has spurred a growing number of analysts to call the the equities market a bubble that will eventually burst. Stocks along with real estate in China are in “the biggest bubble since the Internet bubble of 2000,” said David Woo, head of global rates and currencies at the Merrill Lynch unit of Bank of America Corp.

Source : Bloomberg

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