Monday, December 2, 2013

China Stock-Index Futures Fall as IPO Plan Overshadows PMI Data



China’s stock-index futures fell after the country’s securities regulator issued a reform plan for initial public offerings that prepares to lift a more than one-year freeze on new listings, overshadowing data showing manufacturing growth beating analyst estimates in November.
Futures on the CSI 300 Index (SHSZ300) expiring in December slid 0.7 percent to 2,436 as of 9:16 a.m. Zijin Mining Co. may drop after its Hong Kong-listed stock was cut to reduce from hold at BNP Paribas SA. PetroChina Co. may retreat after it was sued by a Chinese environmental group for pollution in northeast China.
The Shanghai Composite Index added 0.1 percent to 2,220.50 at the close on Nov. 29. The index climbed 3.7 percent in November after President Xi Jinping pledged to ease restrictions on private investment and the one-child policy. The Hang Seng China Enterprises Index rallied 7.7 percent in Hong Kong last month, the most since December.
About 50 companies are expected to complete the IPO approval preparations and list or be ready to do so by the end of January, the China Securities Regulatory Commission said in a statement on its website on Nov. 30. There are more than 760 companies in the queue for approval and it will take about a year to complete an audit of all the applications, it said.
(Source: Bloomberg)           

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