Aug. 21 (Bloomberg) -- Most Chinese stocks rose, led by energy and technology companies. Everbright Securities Co. extended losses after its head of proprietary trading was suspended following a trading error last week.
China Oilfield Services Ltd. climbed to the highest level in six months after its chief financial officer said the company sees strong growth in deep water drilling. Hangzhou HIK-Vision Digital Technology Co. advanced 5.7 percent, leading technology stocks higher. Everbright Securities slumped 5.9 percent for a two-day loss of 15 percent. Poly Real Estate Group Co. dragged down a gauge of property stocks with a 2.7 percent loss.
The Shanghai Composite Index advanced less than 0.1 percent to 2,072.96 at the close, as two stocks rose for every one that fell. The index has declined 8.7 percent this year, dragging down its projected 12-month profit to 8.4 times, compared with the three-year average of 10.4.
“We may reach a bottom soon,” said Xu Shengjun, analyst at Jianghai Securities Co. “Investors are waiting for more news on reforms and economic data. There are still some worries due to the Everbright incident.”
The CSI 300 Index dropped 0.2 percent to 2,308.59 today. The Hang Seng China Enterprises Index slipped 0.4 percent. The Bloomberg China-US Equity Index fell 0.4 percent. Trading volumes in the Shanghai index were 15 percent below the 30-day average, according to data compiled by Bloomberg.
China Oilfield advanced 3.4 percent to 17.56 yuan. CFO Li Feilong said the company doesn’t have financing problems and crude prices can support the deep-water drilling expansion. The company’s Hong Kong shares were upgraded to neutral from underperform at Macquarie Group Ltd.
Yanzhou Coal Mining Co., China’s fourth-largest producer of the fuel, jumped 2.6 percent to 10.70 yuan, the most since Aug. 12. It plans to cut about 400 jobs at its two Australian units to save costs amid weak coal prices.
Hangzhou HIK-Vision advanced 5.7 percent to 22.91 yuan. A gauge of technology stocks in the CSI 300 rose 1.1 percent, adding to a 44 percent rally this year, the most among industry groups.
Everbright Securities, China’s 12th-largest brokerage by revenue, dropped to a one-month low as the broker faced possible fines and more restrictions on business after an unprecedented stock trading error that threatens to erode confidence in China’s market. The head of proprietary trading Yang Jianbo said he was suspended from his position and is assisting with an investigation by the regulators and his company.
He was the only one of about 20 proprietary traders who was suspended, Yang said five days after the strategic investment unit he ran made 23.4 billion yuan ($3.82 billion) of erroneous buy orders. The mistake was described by the China Securities Regulatory Commission as the first of its kind in the nation. Everbright drew a three-month ban on proprietary trading and announced a 194 million yuan loss for its order misstep.
A gauge of developers in the Shanghai index slid 0.9 percent, the most among five industry groups. Poly Real Estate, the second-largest developer, declined 2.7 percent to 10.56 yuan. Gemdale Corp. dropped for a sixth day, losing 0.6 percent to 6.56 yuan.
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