Live | China Markets Live - Shanghai and Shenzhen finish over 4 per cent up, Hong Kong shade off at close
The intense volatility of recent weeks has every chance of remaining the core underlying theme of activity. Investors are increasingly focused the broader question of how this episode might affect the wider economy as many suspect the equity bubble has yet to fully deflate.
Welcome to the SCMP's live markets blog. The intense volatility of recent weeks has every chance of remaining the core underlying theme of activity. Investors are increasingly focused the broader question of how this episode might affect the wider economy as many suspect the equity bubble has yet to fully deflate. We'll bring you the key levels, trading statements, price action and other developments as they happen.
4:23pm: The Hang Seng index recovered some of its lost ground in late trading and closed 0.13 per cent lower at 24,521.12. The H-share index gave up some of its gains in late afternoon traded to finish up 0.57 per cent at 11,291.66.
4:21pm: Hong Kong’s top five stocks by turnover today: Hong Kong Exchanges and Clearing (orange) closed 2.83 per cent up at HK$218.20; Tencent (purple) was up 0.49 per cent to HK$142.80; Ping An Insurance (green) was up 1.02 per cent to HK$44.50; China Mobile (blue) was up 1.19 per cent to HK$102.10; and China Construction Bank (red) finished 0.62 per cent down at HK$6.37.
4:20pm: The Hang Seng Index (orange) and H-shares index (purple) today. Click to enlarge.
3:50pm: China market indices sustained their positive run for most of the day: the Shanghai Composite (orange), Shenzhen Composite (green), CSI300 (purple) and ChiNext (blue). Percentages are against today’s opening. Click to enlarge.
3:14pm: The Hang Seng index is trading 0.2 per cent lower at 24,504.17. The H-share index is up 0.77 per cent at 11,314.67.
3:14pm: The Shanghai Composite index rose steadily throughout the day to close up 4.92 per cent at 3,928.42, its best one day performance since mid July. The CSI 300 index gained 4.54 per cent to close at 4,084.37.
3:14pm: In Shenzhen, the main composite index finished 4.49 per cent higher at 2,274.84. The ChiNext index jumped 5.03 per cent to close at 2,706.72.
2:48pm: The two leading red chip stocks are China Agri-Industries Holdings, up 13.2 per cent to HK$3.85, and China Foods, up 12.4 per cent to HK$4.16, leading a general upswing in the agriculture and food production sectors.
2:17pm: The Shanghai Composite is pushing for one of its strongest one-day returns since mid July, and is up 4.65 per cent at 3,918.2. The CSI 300 index is also performing strongly, and is up 4.27 per cent at 4,073.9.
2:17pm: The Shenzhen Composite index has rallied 4.11 per cent at 2,266.59. The ChiNext index is 4.92 per cent higher at 2,703.89.
2:17pm: The Hang Seng index has slipped back to 24,529.77, down 0.09 per cent for the day so far. The H-share index has strengthened its gain for the afternoon and is up 0.92 per cent at 11,330.74.
1:54pm: Orient Overseas (International) Limited (OOIL), the holding company of Orient Overseas Container Line (OOCL), has made steady gains to HK$42.60, 7.3 per cent up on the day, on news of its first half net profit growth of 32 per cent.
1:30pm: Shenwan Hongyuan has gained 5.15 per cent to HK$4.08. The brokerage published its interim results after Friday closing, which showed revenue more than doubling to HK$429 million and profit hitting 425 per cent of first half last year.
1:12pm: The Shanghai Composite index extended its gains into the afternoon session and is now up 3.54 per cent at 3,876.74. The CSI index is up 3.16 per cent at 4,030.56.
1:12pm: The Shenzhen Composite index has risen 3.37 per cent to 2,250.45 and the ChiNext index is up 4.16 per cent at 2,684.12.
12:17pm: The Hang Seng Index (orange) and H-shares index (purple) from opening to midsession today – click to enlarge.
12:09pm: The Hang Seng Index closed its morning trading at 24,477.62, down 0.39 per cent or 74.85 points. The China Enterprises Index (H-share index) adds 0.34 per cent ,or 38.34 points, to 11,266.28.
11:53am: China indices at midsession today: the Shanghai Composite (orange), Shenzhen Composite (green), CSI300 (purple) and ChiNext (blue). Click to enlarge.
11:49am: As mainland markets finished the morning on a high, just 18 Shanghai A-shares closed down, with 963 up and 144 unchanged. The trend was the same in Shenzhen, where 25 were down, 1,348 were up and 225 were unchanged.
11:40am: The Shenzhen Composite Index goes up 3.63 per cent, or 93.51 points to 2,670.50 at the close of morning trade. The ChiNext Index leapt 3.63 per cent or 93.51 points to 2,670.50.
11:39am: The Shanghai Composite Index closed its morning session at 3,864.10 points, up 3.292 per cent, or 119.89 points. The CSI300 index of Shanghai-Shenzhen large cap stocks gains 2.865 per cent or 111.92 points to 4,018.87.
11:32am: Among finance H-shares, insurers and asset managers are performing best today while brokerages have also moved into positive territory. Banks continue to drag, but not enough to pull back the Hang Seng H-Financials Index into the red. It currently stands at 17600.19, up 18.9 points or 0.11 per cent.
11:18am: Hong Kong-listed gaming stocks Sands China (purple), MGM China (orange) and Wynn Macau (green), whose US parent companies released their interim results before today’s trading, still have a climb ahead if they are to catch up with the Hang Seng Index (blue) this year. Click to enlarge.
11:18am: Hong Kong dollar is trading Monday at 7.7524 to the US dollar, near upper end of the currency peg. Euro/dlr weaker by 0.04 per cent at 1.0963. Dlr/yen at 124.36, stronger by 0.10 per cent. Pound/dlr weaker by 0.04 per cent to 1.5485. Australian dollar to US dollar weaker by 0.30 per cent to 0.7396.
11:16am: Onshore spot yuan is trading at 6.2086 against the US dollar, stronger by one basis points from Friday's close. The offshore yuan stands at 6.2165, weaker by six basis points from the Friday finish.
11:15am: PICC Group (green) and PICC P&C (blue) are riding their strong first half results to outperform the Hang Seng H-shares and H-financials indices – click to enlarge.
10:40am: Although H-shares and red chips are generally outperforming the Hang Seng today, China finance majors are losing ground.
Bank of China, ICBC and CCB have all dropped more than one percentage point, while insurers Ping An and China Life are a shade down and brokerages struggle. Local finance blue chips HSBC and AIA are also off.
10:36am: Industrials, shipping, construction and energy stocks are powering forward in Hong Kong. Logistics major China Merchants Holdings leads the Hang Seng Index gainers, up 3.37 per cent to HK$29.10, mirroring gains in several shipping H-shares.
Shipbuilding and construction firm COMEC is the top-performed H-share, lifting 12.99 per cent to HK$24.35. It is followed by materials and construction groups MCC, Chalco, Luoyang Glass and Maanshan Iron, all up more than 5 per cent.
On the power counter, Northeast Electric lifts more than 6 per cent while Anhui Tianda Oil Pipe, Sinopec Shanghai Petrochemical and Sinopec Oilfield Service Corporation all make solid gains.
10:36am: The Shenzhen Composite Index adds 1.82 per cent, or 39.60 points to 2,216.75. The ChiNext Price Index lifts 1.77 per cent, or 45.60 points at 2,622.59.
10:34am: The Shanghai Composite Index stands at 3,817.61 points, up 1.960 per cent, or 73.40 points. The CSI300 index of Shanghai-Shenzhen large cap stocks rises 1.418 per cent or 55.39 points to 3,962.34.
10:32am: The Hang Seng Index stands at 24,262.13, down 1.18 per cent or 290.34 points. The China Enterprises Index (H-share index) slips 0.69 per cent ,or 77.64 points, to 11,150.30.
10:18am: In the latest profit forecasts from Hong Kong-listed companies, Natural Beauty Bio-Technology expects profits to grow, while diminishing profits are expected by Orange Sky Golden Harvest Entertainment, Great China Holdings and China LNG.
Turning last year’s profits into losses are Chinese Estates Holdings, Future Bright Holdings and Pegasus Entertainment, while China High Precision Automation Group expects to increase its losses.
10:05am: Early winners resuming Hong Kong trading include paper and packaging firms Jia Yao Holdings, which leapt 33 per cent to HK$4.80 on thin turnover, and Changgang Dunxin, up 16 per cent to 74 HK cents.
During their suspensions, Jia Yao entered into an MoU for an exclusive share issue which would lead to the investor holding not less than 51 per cent of the company’s enlarged share capital, while CG Dunxin terminated a non-binding MoU for a share sale.
10:00am: Early losers resuming Hong Kong trading today after suspensions are electronics traders China Jinhai, down 11 per cent to HK$1.06, and Daiwa Associate, dropping 23 per cent to HK$3.40.
During their suspensions, a China Jinhai subsidiary entered into a project agreement with the China Youth Concern Committee, while Daiwa disposed of a subsidiary in a connected transaction among other dealings.
9:49am: US-based parent companies of Hong Kong-listed Macau casino operators MGM China, Sands China and Wynn Macau have issued their interim results.
MGM Resorts reported a 9.5 per cent decrease in net revenue; MGM China opened the day at HK$16.78. Las Vegas Sands net revenue dropped 23.3 per cent; Sands China opened at HK$35.50. Wynn net revenue fell 36.8 per cent; Wynn Macau opened at HK$15.50.
9:42am: The Hang Seng Index opens at 24,215.93, down 1.37 per cent or 336.54 points. The China Enterprises Index (H-share index) opens at 11,113.15, down by 1.02 per cent or 114.79 points.
9:38am: The Shenzhen Composite Index opens at 2,201.41, up 1.11 per cent, or 24.26 points. The NASDAQ-style ChiNext Price Index adds 1.13 per cent, or 29.25 points to open at 2,606.24.
9:37am: The Shanghai Composite Index opens the morning at 3,783.65 points, up 1.053 per cent, or 39.44 points. The CSI300 index of Shanghai-Shenzhen large cap stocks opens at 3,942.55, up 0.911 per cent or 35.60 points.
9:33am: A number of high-frequency traders were “invited” by the CSRC to discuss their trading strategies, with some temporarily suspending such businesses and going on holiday overseas, state-owned Shanghai Securities News reports citing brokers.
9:28am: According to Jefferies, the trading volume of Shanghai A exchange averaged 439 billion yuan a day over the past week, down 28 per cent from the previous week.
The trading volume of Northbound stock connect trades averaged 1.8 billion yuan a day, down 39 per cent week on week. Overall net selling of 1.6 billion yuan (turned from a net buying of 1.9 billion yuan in the previous week) was seen among Northbound trades for the week.
The trading volume of Hong Kong main board averaged HK$ 72 billion, down 24 per cent for the week.
The trading volume of Southbound trades averaged HK$ 876 million, down 33 per cent. A net buying of HK$ 509 million (slightly increased from a net buying of HK$ 241million in the previous week) was seen for the week.
The overall trading volume of Northbound trades continued to be higher than Southbound trades.
9:27am: PICC Group, the People’s Insurance Company (Group) of China, and PICC Property & Casualty issued interim results after Friday closing.
PICC Group estimates a 94 per cent increase in net profit to 6.614 billion yuan, while PICC P&C expects an increase of 85 per cent to 7.79 billion yuan. Both attribute the gains to business development activities and investment income.
PICC Group last traded at HK$3.97. PICC P&C last traded at HK$15.88.
9:25am: China Yunrun Food Group (orange), mainland China’s largest meat supplier, is going to announce its interim result today.
The company’s share price outperformed Hang Seng Index (purple) in May and June but took a deep dive in early July – approximately the same time as the mainland’s stock market rout started – and has since underperformed the index. It closed at HK$2.3 on Friday, up 0.877 per cent from Thursday close.
Click on chart below to enlarge.
9:20am: The People’s Bank of China sets the mid-price of onshore yuan trading at 6.1162, stronger by 12 basis points to the US dollar from the last Friday mid-price fix.
9:18am: Shanghai Composite Index rises 0.003 per cent, or 0.12 points to 3,744.09 at pre-opening session. CSI300 Index adds 0.002 per cent, or 0.07points to 3,906.88.
9:05am: Hang Seng August futures contracts are trading at 24,119 points, down 332 points or 1.36 per cent.
9:05am: The Hong Kong stock exchange has criticized Growth Enterprise Market-listed Larry Jewelry for failing to announce and obtain shareholders’ approval in respect of a material change in the terms of a very substantial acquisition.
It also censures a former executive director and criticises five former non-executive directors for failing to apply the expected degree of skill, care and diligence and to use best endeavours to comply with the GEM rules.
9:03am: No Shanghai listed A-share companies applied to resume trading on Monday while two companies will suspend trading in their stock. The number of suspended companies in Shanghai is 90, representing 8.40 per cent of the total.
In Shenzhen, a total of eight listed companies say they will resume trading on Monday, while two firms will suspend trading in their shares. Some 305 firms in Shenzhen are in voluntary suspension, accounting for about 18.03 per cent of total listed companies.
Orient Overseas International (orange) closed at HK$39.7 last Friday, up 3.25 per cent from Thursday. Its share price underperformed the Hang Seng Index (purple) over the past three months.Click on chart to enlarge.
8:54am: CSRC is investigating illegal “fund matching” businesses by futures trading firms that allow investors to place highly-leveraged bets on stocks and futures, its blog said.
The securities regulator also asked all provincial level governments to probe online equity crowd-funding platforms that allow start-up entrepreneurs access to potential early stage investors in order to prevent potential risks, it said.
8:37am: China’s brokerages and fund management firms were invited to attend a meeting where senior CSRC official Zhang Yujun urged them to watch out for risks in margin trading, to stop providing funds to grey margin financing and umbrella trusts businesses, and to tighten supervision over their management of equity-heavy mutual funds, a statement on the CSRC blog said last Friday.
Zhang reiterated in the meeting that “malicious short-selling” through automated trading is strictly prohibited,
8:11am: HSBC Global Research on China's exports:
"July export growth came in below market expectation at -8.3 per cent y-o-y, the weakest reading since February 2014.
The decline is mainly driven by deteriorating external demand, reflected in a sizable contraction of ordinary exports. Demand from all key export markets weakened further, from the already disappointing pace of growth in 1H 2015.
The modest pace of global recovery apart, the relative strength of the currency likely also added to the challenges facing exporters.
Meanwhile, the contraction in imports widened to -8.1 per cent y-o-y in July, on the back of further slide in commodity prices over the month.
Today's data point to an increasingly challenging export outlook. We expect growth to remain more domestically driven in the second half of the year. We forecast further monetary and fiscal policy easing in the coming months."
8:07am: HSBC Global Research:
"July CPI inflation came in line with market expectation at 1.6 per cent y-o-y. Rising pork prices pushed up food price inflation to 2.7 per cent y-o-y and contributed 0.5 ppt to headline inflation.
Meanwhile, sluggish domestic demand and downward adjustment to regulated gasoline prices led to further moderation in non-food price inflation.
We expect risks to CPI inflation to remain balanced in the coming months, which should leave ample room for further policy easing."
7:35am: Five most trade stocks in Hong Kong rose last Friday. They are Ping An Insurance (orange), Tencent (purple), Hong Kong Exchanges & Clearing (green), CKH Holdings (blue) and ICBC (red).
Ping An Insurance added 1.7 per cent to HK$44.05; Tencent rose 0.9 per cent to HK$142.1; Hong Kong Exchanges & Clearing added 3.4 per cent to HK$212.2; CKH Holdings rose 1 per cent to HK$115.3; ICBC added 0.9 per cent to HK$5.39.
Click graph to enlarge (percentages are against today’s opening).
7:30am: Hang Seng Index (orange) and Hang Seng China Enterprises Index (purple) closed marginally higher at the end of Friday’s session. The percentage shown is computed from the opening and not the previous day's close. Click chart to enlarge.
