PT. Equityworld Futures – China’s stocks rose, sending the benchmark index toward a second week of gains, as the prospect of more monetary stimulus overshadowed concern a flood of new share sales will divert funds from existing equities.
The Shanghai Composite Index added 0.6 percent to 5,150.68 at 9:45 a.m., taking this week’s advance to 2.5 percent. Data this week showed parts of the economy stabilizing as factory output and credit growth accelerated in May, while exports and producer prices slid. The People’s Bank of China may cut banks’ reserve-requirement ratios as early as this weekend, according to China Merchants Bank Co.
The China Securities Regulatory Commission has approved 24 new share sales, according to a statement released Tuesday. Subscriptions for 25 A-share initial public offerings including Guotai Junan Securities Co. may tie up 6.68 trillion yuan of liquidity starting mid-June, according to the median estimate of 6 analysts surveyed by Bloomberg.
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