China CSI300 stock index futures for November rose 0.9 percent, to 3,482.4, 120.03 points below the current value of the underlying index.
Advertisement
In Shenzhen, BOE Technology, down 0.7 percent to 3.08 yuan; XCMG Machinery, up 6.7 percent to 4.59 yuan and Suning Appliance, down 1.0 percent to 16.12 yuan were among the most actively traded.
The second was Shanghai Composite returns, rallies and declines in percentage terms, where the index went up by 161%, only to fall by 42% three months thereafter.
“The market was slightly buoyed by the central bank’s rate cut. Medium and small companies, and securities companies were relatively dynamic”, said Zhang Qi, an analyst at Haitong Securities in Shanghai. “So overall, the market stayed stable today”, he added.
“The influence of the central bank’s rate cut faded away by the afternoon”. Odds the Federal Reserve will move on rates at their next meeting jumped to 46 percent from around 32 percent a week ago, after the central bank dropped a reference to global risks and asserted that economic growth remains “moderate”. Around 67% of Shanghai-listed companies that have reported third-quarter results so far have trailed analysts’ estimates, versus 52% for the MSCI Emerging Markets Index.
He also said traders were waiting for “key policy signals” from the party meeting in Beijing. Yuan trade remained close to the official midpoint setting. The People’s Bank of China weakened the reference rate by 0.07 per cent to 6.3536 after raising it by 0.09 per cent yesterday and 0.07 per cent on Monday.
The yuan was little changed at 6.3528 per dollar in Shanghai, after weakening as much as 0.13 percent.
Advertisement
“So pressure for the onshore market to weaken exists”. The USA bank predicts reserve-requirement ratios will be lowered by another 50 basis points by year-end, though policy makers will seek to prevent the yuan from weakening. The large-cap CSI 300 edged up 0.2 per cent to 3,533.31.
