China Stock-Index Futures Rise After Baoding Tianwei Default

PT BEST PROFIT FUTURESChinese stock-index futures rose as Baoding Tianwei Group became the country’s first state-owned company to default on an onshore bond, underscoring the government’s pledge to open a cooling economy to market forces.

CSI 300 Index futures for May delivery, the most active contract, climbed 0.7 percent to 4,638.20 at 9:16 a.m., while the FTSE China A50 futures for April added 0.2 percent. China Minsheng Bank may be active after the lender reported a 5.5 percent gain in first-quarter net income. Ten companies will be making their trading debuts Wednesday including Beijing Dahao Technology Corp. and Ningbo Medical System Biotechnology Co.

The Shanghai Composite Index rose 1.8 percent to 4,293.62 on Tuesday, while the Hang Seng China Enterprises Index in Hong Kong climbed 3 percent. Tianwei, a transformer maker that is a unit of the Chinese government-owned China South Industries Group Corp., said it will fail to pay 85.5 million yuan ($ 13.8 million) of bond interest due Tuesday.

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Source: Bloomberg

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