China’s Index Futures Increase as Shares Head for Weekly AdvanceWeiyi Lim
China’s stock-index futures rose as the benchmark index heads for a fourth week of gains.
Futures on the CSI 300 Index expiring in June rose 0.1 percent at 9:17 a.m. local time. Fujian Longking Co. may advance after Xinhua News Agency reported China will make the environmental protection industry a driver of economic growth. China Vanke Co. may move after saying it will partner with Baidu Inc. on mobile Internet services. Dongfeng Automobile Co. may be active after vehicle sales through May dropped from a year ago.
The Shanghai Composite Index rose 0.8 percent to 2,040.88 yesterday, bringing its weekly gain to 0.1 percent. The gauge capped its 12th straight day of swings within plus or minus 1 percent on a closing basis yesterday, the longest stretch since 2001. The index’s 50-day volatility reading fell to 12.5, the lowest since at least June 2004.
The CSI 300 Index added 1.05 percent to 2,150.60 yesterday, while the Hang Seng China Enterprises Index gained 0.5 percent. The Bloomberg China-US Equity Index climbed 0.9 percent.
China should refrain from rolling out more stimulus to boost economic growth and continue to implement changes to curb dangers from shadow banking and local government debt, the International Monetary Fund said.
“We are not counseling stimulus at this point, we don’t think that there are any sufficient signs to warrant that,” First Deputy Managing Director David Lipton said at a briefing in Beijing yesterday.
The Shanghai gauge has dropped 3.5 percent this year and trades at the lowest valuation relative to the MSCI Emerging Markets Index on record, according to data compiled by Bloomberg. The Chinese index is valued at 10 times reported earnings, compared with 13.2 for MSCI’s developing measure.
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., added 0.8 percent yesterday. The Standard & Poor’s 500 Index rose 0.7 percent to a record as the European Central Bank announced measures to counter deflation and investors awaited today’s American employment report.