China Stock-Index Futures Rise; Country Garden May Be Active

PT BEST PROFIT FUTURESChinese stock-index futures rose after the benchmark Shanghai gauge climbed to the highest level since March 2008.

Futures on the CSI 300 Index expiring in April, the most active contract, advanced 0.8 percent to 4,164.20 as of 9:18 a.m. Environmental shares may be active after China National Radio said the government will announce a plan to limit water pollution. Country Garden Holdings Co. may move after saying it will sell a 9.9 percent stake to Ping An Insurance Group Co.  to raise capital.

The Shanghai Composite Index rose 1.7 percent to 3,810.29 on Wednesday after the government’s manufacturing gauge signaled an improvement in the world’s second-largest economy. The stock index has jumped 86 percent since the end of June amid speculation of further monetary easing spurred by borrowed funds. The balance of margin trading in Shanghai topped the 1 trillion yuan ($ 161 billion) level for the first time on Wednesday.

The CSI 300 Index advanced 1.8 percent. Hong Kong’s Hang Seng China Enterprises Index added 1.6 percent, while the Hang Seng Index added 0.7 percent. The Bloomberg China-US Equity Index rose 0.4 percent on Wednesday.

The outstanding balance of margin debt on the Shanghai Stock Exchange climbed to 1.01 trillion yuan on Wednesday after surging to 992.1 billion yuan the previous day. The Shanghai gauge’s relative strength index has drifted above 70 for a 12th straight day, signaling that shares are poised for a reversal.

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Source : Bloomberg

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