China stocks rebounded in volatile trading after the benchmark index briefly dropped below the 3,000 level and officials kept the yuan’s reference rate stable for the third day.
The Shanghai Composite Index increased 0.7 percent to 3,036.81 at 9:53 a.m. local time, after falling as much as 0.9 percent. Technology and financial companies led gains. Investors have misunderstood the People’s Bank of China’s intentions in its recent moves on the reference rate, according to Ma Jun, chief economist at the Chinese central bank’s research bureau. The monetary authority set the reference rate little changed on Tuesday at 6.5628 per dollar.
Source : Bloomberg
Chinaâ€™s stock-index futures rose after the Shanghai Composite Index surpassed the 3,000 level.
Futures on the CSI 300 Index expiring in December, the most active contract, gained 1.6 percent to 3,352.80 as of 9:19 a.m. China Railway Construction Corp. may be active after it said it may raise as much as 9.9 billion yuan ($ 1.6 billion) in a private share sale. Brokerages may move after the 21st Century business Herald reported the securities regulator will ease their capital limits. Banks may be active after the China Securities Journal reported the government may stop making loan-to-deposit ratios a mandatory requirement.
The Shanghai Composite Index climbed 2.3 percent to 3,021.52 yesterday amid speculation the government will further ease monetary policy to support the economy after manufacturing data trailed estimates. Hong Kongâ€™s Hang Seng China Enterprises Index fell 0.7 percent. The CSI 300 Index rose 2.7 percent. The Hang Seng Index lost 1.6 percent. The Bloomberg China-US Equity Index retreated 0.4 percent in New York.
The Shanghai Composite is valued at 11.3 times 12-month projected earnings, the highest level in three years, according to data compiled by Bloomberg. It has advanced 43 percent this year on speculation the central bank will further monetary policy after cutting interest rates for the first time in two years last month.
Source : Bloomberg