China Stocks Rise Most in a Week as Storm Shuts Hong Kong Marketby
Shanghai Composite trading volume tumbles to a two-month low
Developers pace gains; Wanda Cinema drops after scrapped deal
Chinese stocks rose the most in a week, with developers helping pace an afternoon advance in thin trading. A typhoon shuttered Hong Kong’s markets for the day.
The Shanghai Composite Index climbed 0.6 percent at the close, with most of the gains coming toward the day’s end. Trading volumes on the gauge were the lowest since May 30. Future Land Holdings Co. rallied to a three-month high as a measure of property shares increased the most in three weeks. The ChiNext index of smaller companies advanced 0.7 percent, rebounding from a six-week low.
“There was a technical rebound” towards the close, said Dickie Wong, executive director of research at Kingston Financial Group Ltd. Trading volume remains weak “because there’s no interest for people to put their money in the stock market as the sentiment isn’t good. I don’t see clear momentum in the A share market.”
The Shanghai index dropped to a one-month low on Monday after a government gauge of manufacturing signaled a contraction in July, diverging from a private indicator that showed a better-than-expected reading. Trading in Hong Kong was scrapped after tropical storm Nida lashed the city, forcing schools to shut and grounding flights.
The Shanghai Composite climbed to 2,971.28 at the close, its first advance in three days. The measure is still down 16 percent this year, ranking among the world’s worst-performing benchmarks of 2016.
Future Land Holdings jumped 6.5 percent, the biggest gainer on a measure of developers that climbed 1.3 percent. Wanda Cinema Line Co. fell 1.2 percent in Shenzhen after Dalian Wanda Group Co. shelved a $5.6 billion reorganization plan for its entertainment assets.