China Stock-Index Futures Fall as CSRC Restarts IPO Process

Chinese stock-index futures fell after securities regulator gave the green light to initial public offerings by 10 companies as a five-month freeze on new share sales ends and new margin-requirement rules take effect.

The December futures contract on the CSI 300 Index slipped 0.1 percent to 3,643.60 as of 9:21 a.m. local time. Guotai Junan International Holdings Ltd. plunged 14 percent in pre-market trading in Hong Kong after the brokerage said it hasn’t been able to contact its chairman and chief executive officer since last week.

The CSRC said this month that the IPOs of 28 companies will be allowed to proceed by the end of the year, after they were suspended in July following a market rout. The 28 will probably tie up 3.4 trillion yuan ($ 533 billion) in subscription, according to the median of six analyst estimates compiled by Bloomberg.

The Shanghai Composite Index climbed 0.4 percent to 3,630.50 on Friday, extending gains last week to 1.4 percent.  Hong Kong’s Hang Seng China Enterprises Index and the Hang Seng Index both gained 1.1 percent on Friday. Hong Kong stocks rallied in late trading amid speculation the Chinese government will take more steps to stimulate the economy. The CSI 300 Index declined less than 0.1 percent. The Bloomberg China-US Equity Index, the measure of the most-traded U.S.-listed Chinese companies, added 1.8 percent in New York.

Source: Bloomberg


Chinese Stock-Index Futures Rise After CSRC Reassures Investors

Chinese stock-index futures rose after the nation’s securities regulator assured investors the government hasn’t withdrawn support for equities amid the nation’s biggest one-day rout since 2007.

FTSE China A50 futures for August delivery advanced 0.2 percent at 9:01 a.m. local time in Singapore. The Shanghai Composite Index plunged 8.5 percent to 3,725.56 on Monday, while the CSI 300 Index tumbled 8.6 percent. The Hang Seng China Enterprises Index slumped 3.8 percent in Hong Kong and the Hang Seng Index declined 3.1 percent.

Source : Bloomberg