China Stock-Index Futures Rise After Agribank, China Life Profit

China’s stock-index futures rose after Agricultural Bank of China Ltd. (601288) to China Life Insurance Co. reported profit increases in the first half of the year.

Futures on the CSI 300 Index (SHSZ300) expiring in September gained 0.1 percent to 2,331.20 as of 9:19 a.m. local time. Developers may move after the Xinhua News Agency reported yesterday the government will expand the scope of an individual property tax trial. Zoomlion Heavy Industry Science and Technology Co., China’s second-biggest maker of construction equipment, may decline after first-half profit dropped 48 percent.

The Shanghai Composite Index (SHCOMP) dropped 0.1 percent to 2,101.30 yesterday, paring this year’s loss to 7.4 percent. The CSI 300 Index declined 0.6 percent to 2,328.06. The Hang Seng China Enterprises Index (HSCEI) retreated 2.2 percent. The Bloomberg China-US Equity Index added 0.5 percent in New York.

The Shanghai Composite is valued at 8.4 times its projected 12-month earnings, compared with the five-year average of 12.7 times, according to data compiled by Bloomberg. Trading volumes in the index were 60 percent higher than the 30-day average yesterday, according to data compiled by Bloomberg.

Of the 194 Shanghai-listed companies that reported first-half earnings that Bloomberg tracks, 87 beat analyst estimates, 95 trailed and the rest were in line. Chinese publicly traded companies are required to release first-half reports by the end of August.

China Life, the nation’s biggest insurer, may rise after saying profit jumped 68 percent from a year earlier in the first six months on higher investment income and lower impairment losses. AgriBank, China’s third-biggest lender by market value, may gain after reporting a 22 percent profit increase in the first half.

Upcoming Data

The statistics bureau is scheduled to release results of its official manufacturing index for this month on Sept. 1. The reading is estimated to be 50.6, up from the previous month’s 50.3, according to the median estimate of 29 economists. A preliminary reading by HSBC Holdings Plc and Markit’s Purchasing Managers Index last week was 50.1, resuming expansion from July. The 50 level that divides expansion and contraction.

China will expand a credit asset securitization trial according to a report on a State Council meeting presided over by Premier Li Keqiang, posted to the central government website. The expansion provides financial support for economic restructuring, transformation and upgrading, the report said.

Sohu.com Inc. led gains among Chinese equities in New York yesterday on speculation Qihoo 360 Technology Co. is a step closer to buying a stake in its Sogou online search engine unit.

Online news portal Sohu jumped the most since May 20, while Qihoo, China’s second biggest search engine, slid for the first time in a week on concern its sale of convertible bonds will sink its stock value. Digital map provider AutoNavi Holdings Ltd. tumbled 14 percent, the most on record, on plans to offer free navigation applications.

--Zhang Shidong. Editors: Allen Wan, Richard Frost

To contact Bloomberg News staff for this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net

To contact the editor responsible for this story: Michael Patterson at mpatterson10@bloomberg.net

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