China Stock-Index Futures Rise After Worst Two-Day Drop in June

China’s stock-index futures rose after the benchmark index posted its biggest two-day loss this month.

Futures on the CSI 300 Index expiring in June gained 0.5 percent to 5,082 as of 9:18 a.m. local time. Brokerages may be active after Guotai Junan Securities Co. said it will sell shares at 19.71 yuan ($ 3.17) each to raise as much as 30.1 billion yuan in what would be the nation’s biggest domestic initial share sale since 2010. Bank of Communications Ltd., part-owned by HSBC Holdings Plc, may gain after the State Council approved the lender’s plan to accept private capital.

The Shanghai Composite Index dropped 3.5 percent to 4,887.43 on Tuesday, extending losses to 5.4 percent in the past two days, amid concern valuations are excessive and a flood of share sales will lure funds from existing equities.

Source : Bloomberg


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