Futures on the CSI 300 Index (SHSZ300) expiring in September lost 0.5 percent to 2,303.80 as of 9:21 a.m. China Shenhua Energy Co., the biggest coal producer, may decline. Industrial & Commercial Bank of China Ltd. and Ping An Insurance (Group) Co. may advance after posting higher profits. Everbright Securities Co., whose trading error sparked the wildest Chinese stock swings in four years earlier this month, will be suspended.
The Shanghai Composite Index (SHCOMP) dropped 0.2 percent to 2,097.23 yesterday. The index has rallied 5.2 percent this month, the biggest gain among benchmark indexes in Asia, as reports ranging from industrial production to money supply signaled the economy is stabilizing. That overshadowed the Aug. 16 trading error from Everbright Securities that sparked the biggest intraday swing for stocks since 2009.
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 divides expansion and contraction.
Trading volumes in the Shanghai index were 30 percent higher than the 30-day average yesterday, according to data compiled by Bloomberg. It’s 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.
Crude oil fell from a two-year high and gold retreated the most in more than two weeks yesterday. Concern conflict with Syria will disrupt Middle East oil supplies eased as U.K. Prime Minister David Cameron failed to gain parliamentary backing for military action.
ICBC led the nation’s biggest banks in posting faster-than-estimated second-quarter profit growth by containing bad loans and selling more wealth management products. Second-quarter net income climbed 13 percent to 69.6 billion yuan, beating the 67.5 billion-yuan median estimate of 11 analysts surveyed by Bloomberg News. Bank of China Ltd., the fourth-biggest, separately reported a 17 percent profit increase yesterday.
Ping An may be active. The insurer said first-half profit rose 28 percent from a year earlier as investment income expanded and earnings from banking operations grew.
Of 219 Shanghai-listed companies that reported first-half earnings that Bloomberg tracks, 101 beat analyst estimates, 105 trailed and the rest were in line.
Trina Solar Ltd. (TSL) led gains in Chinese renewable energy makers in New York on prospects of increased demand for its products in Asia. JA Solar Holdings Co., a Shanghai-based maker of cells, said yesterday that second-quarter shipments beat its previous forecast, driven by orders from China and Japan. Spot prices for Polysilicon, a raw material for making solar products, has increased to a four-month high in the past week, signaling a rebound.
--Zhang Shidong. Editors: Allen Wan, Richard Frost