China’s benchmark stock index rose for a third day, led by technology and drug shares, as more companies resumed trading and trade data exceeded economists’ estimates.
The Shanghai Composite Index climbed 1 percent to 3,915.39 at 10:25 a.m, as eight stocks advanced for every one that declined. A total of 1,045 companies were suspended from trading at the open on mainland Chinese exchanges, down from 1,453 at the close on Friday. Hundsun Technologies Inc. surged 10 percent after resuming trading. PetroChina Co. and Industrial & Commercial Bank of China Ltd., the two biggest stocks, slid more than 4 percent.
“Bargain hunters are aiming for above-average returns as they focus on small caps that were hit the most during the market rout,” Dai Ming, a fund manager at Hengsheng Asset Management Co., said in Shanghai. “The market doesn’t have too much interest in big companies. They were the outperformers in the market plunge.”
Exports rose 2.1 percent in June from year-earlier levels, while imports dropped 6.7 percent for a trade surplus of 284.2 billion yuan ($45.8 billion), the customs administration said in a statement Monday. That compares with median estimates for a 1.2 percent gain in exports and a 16.2 percent decline in imports.
Margin traders increased holdings of shares purchased with borrowed money for the first time since the stock rout began in mid-June on Friday, with the outstanding balance of margin debt on the Shanghai Stock Exchange rising by 0.5 percent from the previous day to 932.3 billion yuan.
Hong Kong’s Hang Seng China Enterprises Index slid 0.6 percent, while the Hang Seng Index dropped 0.8 percent.
Courtesy: Bloomberg Business 13 July 2015