China Stock-Index Futures Are Little Changed After Monthly Gain
China’s stock-index futures were little changed as benchmark indexes headed for a second straight monthly advance.
Futures on the CSI 300 Index (SHSZ300) expiring in December were flat at 2,453 as of 9:20 a.m. local time. Banks may be active after the Shanghai Securities News said the regulator will encourage lenders to sell preferred stocks. China Petroleum & Chemical Corp. (600028), also known as Sinopec, and PetroChina Co. may move after the government raised gasoline prices.
The Shanghai Composite Index (SHCOMP) climbed 0.8 percent to 2,219.37 yesterday, the highest close since Oct. 21. The gauge has advanced 3.6 percent this month as the government pledged to reform the economy by easing private investment and the one-child policy. The index is up 1.1 percent this week.
The CSI 300 Index rose 1 percent to 2,439.53 yesterday. The Hang Seng China Enterprises Index (HSCEI) retreated 0.2 percent. U.S. exchanges were closed for the Thanksgiving holiday.
The China Securities Regulatory Commission will support the sale of preferred shares and bonds with write-down provisions by commercial banks to expand channels for bolstering capital, the Shanghai Securities News reported today, citing Jia Wenqin, an official at the regulator.
China is likely to maintain 2014 economic growth at 7.5 percent or higher, the China Securities Journal said, citing Wang Yiming, deputy director of the macroeconomic research institute at the National Development and Reform Commission.
Sinopec, Asia’s biggest oil refiner, may be active among refiners today. China will raise gasoline prices by 160 yuan a metric ton and diesel prices by 155 yuan a metric ton starting from today, the NDRC said.
Defense stocks may move. Chinese warplanes flew over the country’s new air-defense zone after Japan sent aircraft into the area without warning.
The flights yesterday by Chinese fighter jets and an early warning aircraft were normal patrols, Shen Jinke, an air force spokesman, was quoted as saying by state news agency Xinhua. Japanese Air Self-Defense Force aircraft entered the zone on a regular patrol, Chief Cabinet Secretary Yoshihide Suga said.
Separately, China may start trial free-trade zones in the region’s Manzhouli city, Heilongjiang province’s Suifenhe city and Jilin province’s Hunchun city, the China Securities Journal reported today.
The Shanghai Composite trades at 8.7 times projected profit for the next 12 months, compared with the seven-year average of 15.3, according to data compiled by Bloomberg.
--Zhang Shidong. Editors: Richard Frost, Michael Patterson
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