NewChinese shares trade sideways as investors mark time before US Fed decision on rates

China's equity markets traded sideways on Thursday morning as investors paused for breath after Wednesday’s late flurry of buying and remained circumspect ahead of the Fed’s imminent announcement on US interest rates.

The Shanghai Composite went to the midday break on 3,168.31 points, up just half a percentage point, having leapt almost 5 per cent in the final hour on Wednesday on rumours of a relaxation in off-market lending restrictions and possible official buying.

Hong Kong’s Hang Seng Index gained 0.77 per cent to reach 22,136.36 points, while the China Enterprises index of major H-share companies did better, lifting by 2.33 per cent.

Cathay Pacific Airways gained 1.5 per cent per cent to HK$14.66 after the flag carrier released August traffic figures for it and subsidiary Dragonair. Passenger numbers topped 3 million for the first time, up 8.5 per cent month on month, but cargo – which accounts for around a quarter of group turnover – was up just 0.8 per cent.

Tsingtao Brewery jumped 12.8 per cent and China Resources Enterprise gained almost 5 per cent after Goldman Sachs said a merger-led beer industry shake up would drive profits longer term, while China insurance giants Ping An and China Life improved around 4 per cent after a favourable sector outlook from Bank of America Merrill Lynch.