Chinese stocks headed for their biggest monthly advance since March amid speculation policy makers will help support equities and that a selloff on Wednesday was overdone.
The Shanghai Composite Index was poised for a 2.1 percent increase in July as it slipped 0.1 percent as of 10:09 a.m. local time, while a gauge of Chinese stocks in Hong Kong has advanced 3.6 percent since June 30. Great Wall Motor Co. climbed toward a six-month high Friday in Shanghai after its first-half results beat estimates. Cnooc Ltd., the nation’s biggest offshore oil and gas producer, fell in Hong Kong after projecting a loss.
The advances in July coincide with a rally in Asian equities amid speculation global policy makers will offer stimulus to offset any fallout of the U.K.’s vote to leave the European Union. Chinese stocks in Hong Kong and Shanghai are poised for a second monthly gain, even as concern that the nation’s regulators will restrict cash from wealth management products from moving into equities tempered the increase this week.
The Shanghai equity gauge, which tumbled the most in six weeks on Wednesday on concern about the curbs on WMPs, traded at 2,990.10. The Hang Seng China Enterprises Index of mainland companies in Hong Kong fell 0.6 percent, while the benchmark Hang Seng Index fell 0.7 percent. The MSCI Asia Pacific Index has jumped 4.7 percent in July.
Source: Bloomberg Â Â Â Â Â Â Â Â Â Â Â Â Â