China’s Stock Futures Swing as Benchmark Heads for Monthly Gain

China’s stock-index futures swung between gains and losses as the benchmark gauge headed for its first monthly gain since February.

Futures on the CSI 300 Index expiring in June, the most-active contract, fell less than 0.1 percent to 2,152 at 9:21 a.m. local time. China Vanke Co., the nation’s biggest listed property developer, may move after its employees bought shares in the company for a second day.

The Shanghai Composite Index dropped 0.5 percent to 2,040.60 yesterday, trimming a monthly gain to 0.7 percent. China’s markets will be closed on June 2 for a holiday.

The CSI 300 Index declined 0.7 percent to 2,155.60. The Hang Seng China Enterprises Index fell 0.1 percent. The Bloomberg China-US Equity Index, the measure of the most-traded U.S.-listed Chinese companies, added 0.1 percent in New York.

The National Bureau of Statistics and China Federation of Logistics & Purchasing are due to release their manufacturing index for this month on June 1. The gauge rose to 50.7 from 50.4 in April, according to the median estimate of 24 economists in a Bloomberg survey. A reading of more than 50 indicates expansion.

The Shanghai Composite is valued at 7.6 times projected 12-month earnings, compared with the five-year average multiple of 11.7, according to data compiled by Bloomberg. Trading volumes in the index were little changed from the 30-day average yesterday, according to data compiled by Bloomberg.

Vanke Shares

China Vanke employees bought 23.2 million shares through the Shenzhen Stock Exchange yesterday for 198 million yuan ($31.7 million), according to an exchange statement. They bought 35.8 million shares a day earlier.

China’s so-called mini-stimulus is beginning to morph into something larger, according to some analysts. Measures including central bank loans for low-income housing are “starting to amount to something quite significant,” Nomura Holdings Inc. economists said. UBS AG said the government has gradually strengthened its mini-stimulus over the past couple of months and the central bank “has quietly eased liquidity conditions.”

Alibaba Group Holding Ltd.’s potentially record-breaking initial public offering risks handing losses to investors in other U.S.-listed Chinese Internet stocks.

The operator of China’s largest online marketplace filed this month for what could be the largest ever U.S. IPO, creating competition for investor cash going into new technology stocks. Analysts surveyed by Bloomberg estimate the company’s total value at $168 billion, only about 15 percent less than the combined market capitalization of 35 Chinese information technology firms listed in the U.S.

Investors are poised to sell other Chinese dot-com stocks to free up cash for the IPO, which is projected to raise about $20 billion, according to Blackfriars Asset Management Ltd.

— With assistance by Shidong Zhang

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