China’s Stock Futures Slump After Shanghai Climbs to 4-Year High

China’s stock-index futures fell after the benchmark index surged to a four-year high yesterday.

Futures on the CSI 300 Index expiring in January, the most active contract, lost 1.9 percent to 3,377.40 as of 9:27 a.m. local time. Zijing Mining Group Co. may drop after saying its controlling stakeholder cut its stake in the company. Leshi Internet Information & Technology (Beijing) Co. may gain as exectutives plan to buy up to 510,000 shares over six months.

Hong Kong’s Hang Seng China Enterprises Index rose 3 percent to 11,744.02 yesterday, the most since Dec. 4. The ChiNext index, dominated by technology and drug stocks, slumped 4.9 percent. The China Securities Regulatory Commission is probing companies and individuals involved in suspected market manipulation on 18 stocks and has set up a task force, the regulator said in a Dec. 19 statement on its microblog, citing an unnamed spokesman. Most of these stocks are small companies listed in Shenzhen, according to the statement.

The CSI 300 Index climbed 0.3 percent. The Hang Seng Index gained 1.3 percent. The Bloomberg China-US Equity Index added 1 percent in New York.

Source : Bloomberg

MARKET

Chinese Stocks in Hong Kong Rise as Shanghai Hits 4-Year High

China’s stocks trading in Hong Kong rallied the most in a week after the Federal Reserve pledged to be patient on raising interest rates and the Chinese government took further steps to support the economy.

PetroChina Co., China Life Insurance Co. and China Vanke Co. surged more than 2 percent in Hong Kong. Poly Real Estate Group led gains for property developers in Shanghai. Data today showed new home prices fell in 67 out of 70 cities tracked by China’s statistics bureau, compared with 69 cities in October.

Hong Kong’s Hang Seng China Enterprises Index jumped 1.8 percent at 9:34 a.m, while the Shanghai Composite Index climbed 0.3 percent to a four-year high of 3,070.53.

The CSI 300 Index was little changed after rallying for four days. The Hang Seng Index added 1 percent. The Bloomberg China-US Equity Index surged 2.2 percent in New York yesterday.

The Shanghai Composite has advanced 45 percent this year amid speculation the central bank will reduce lenders’ reserve-requirement ratios after cutting interest rates for the first time in two years last month.

Source : Bloomberg

MARKET