China Stock-Index Futures Gain, Benchmark Heads for Weekly Riseby
China’s stock-index futures rose as the country’s benchmark gauge headed for a weekly advance amid weakening turnover.
Futures on the CSI 300 Index expiring in December climbed 0.6 percent to 3,689.80 at 9:15 a.m. local time. Railway and power companies may move after Shanghai Securities News reported that China and Poland may sign agreements on high-speed rail and nuclear projects. Beijing Capital Co. may be active after China Daily reported the company is looking to acquire clean-technology companies to meet the nation’s sewage and solid-waste treatment needs.
The Shanghai Composite Index and Hong Kong’s Hang Seng China Enterprises Index both rose 1.4 percent on Thursday. The Shanghai index has climbed 1 percent this week. Turnover in Hong Kong and Shanghai slumped on Thursday, with volume at least 19 percent below the 30-day average.
The Shanghai gauge has climbed 24 percent from an Aug. 26 low, spurred by six reductions in interest rates within a year and signs that the government’s unprecedented measures to stem a $5 trillion rout have stabilized share prices. The index’s 30-day volatility index, a gauge of price swings, dropped to the lowest level since May on Thursday.
Margin traders raised holdings of shares purchased with borrowed money for a second day on Thursday, with the outstanding balance of margin debt on the Shanghai Stock Exchange rising to 723.7 billion yuan ($113 billion), the highest level since Aug. 25.
The People’s Bank of China said on Thursday it will lower short-term borrowing costs for smaller banks, the latest in a series of steps aimed at preventing sharp fluctuations on the money market.
The Conference Board’s China Leading Economic Index for October is due at 10 a.m.