Chinese Stocks Poised for Biggest Monthly Advance; Hang Seng Fall

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              

PT Bestprofit Futures – MARKET

Most Chinese Stocks Retreat as Energy, Utility Drop; Hang Seng Fall

Most Chinese stocks retreated amid low volumes in Shanghai, with utility and energy companies among the biggest decliners.

The Shanghai Composite Index was little changed as of 9:55 a.m. local time. China Railway Construction Corp. led a gauge of utilities lower, while China Oilfield Services paced a drop in energy companies in Hong Kong after a drop in crude prices last week.

Trading volume on the mainland was 26 percent below the 30-day average for the time of day, with five shares declining for about every four that rose and a measure of 10-day volatility dropping to a two year low. Monday’s equity losses come after Group of 20 finance chiefs signaled escalating concern about a wave of anti-globalization sentiment. Following a two-day meeting in Chengdu city, they emphasized fiscal and structural policies to boost growth, and renewed a pledge to promote inclusiveness.

The Shanghai Composite was at 3,013.38. The Hang Seng China Enterprise Index fell 0.3 percent to 9,009.16, while the Hang Seng Index lost 0.3 percent as well. China Railway Construction declined 0.8 percent and China Oilfield Services dropped 0.8 percent.

A total of 14 companies will raise up to 12 billion yuan ($ 2.1 billion) via initial public offerings, China Securities Regulatory Commission said in a statement on July 22. Seven companies will be listed on the Shanghai Stock Exchange with the others in Shenzhen, it said.

Source: Bloomberg

PT Bestprofit Futures – MARKET