Chinese Stock Futures Rise on Government Support Speculation

Chinese stock-index futures rose on speculation the government will introduce measures to boost equities after the benchmark index entered into a bear market.

Futures on the CSI 300 Index expiring in July increased 0.6 percent to 4,081 as of 9:17 a.m. The Economic Observer reported the government is considering measures to stabilize the stock market including a reduction in stamp tax, while the finance ministry said it will allow the pension fund to invest in equities. Regulators are also considering suspending initial public offerings, people familiar with the matter said Monday.

The Shanghai Composite Index dropped 3.3 percent to 4,053.03 on Monday, taking declines from its June 12 peak to more than 20 percent, as the nation’s fourth interest-rate cut since November outweighed concern leveraged investors are unwiding positions. The Hang Seng Index sank 2.6 percent, while Hong Kong’s Hang Seng China Enterprises Index slid 3 percent. The CSI 300 Index fell 3.3 percent.

Source: Bloomberg

MARKET

Leave a Reply

Your email address will not be published. Required fields are marked *