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China stocks steadies, investors wary after selloff; Hong Kong up
November 3, 2015 / 4:36 AM / 2 years ago

China stocks steadies, investors wary after selloff; Hong Kong up

* China stocks subdued, steadies after selloff

* Market still cautious after crackdown on irregular futures trade

* Hong Kong shares track gains in global market

SHANGHAI, Nov 3 (Reuters) - China stocks steadied in cautious trade on Tuesday following a sell-off the previous session that was triggered by the government’s crackdown on irregular futures trade.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen was little unchanged at 3,482.70 points, while the Shanghai Composite Index was flat at 3,325.67 points.

The relative stability in trading belied underlying concerns over a cooling economy and a continuing crackdown on risky trading. Trading volumes were light, probably reflecting investor cautiousness.

Stocks were hit hard on Monday on news China has arrested two executives from a Hong Kong-owned fund for irregular futures trades and was investigating the general manager of Shanghai-based company Zexi Investment for suspected insider trading.

The summer rout in stocks has prompted regulators to restrict automated trading in commodities futures and tighten other rules which have winded the futures market.

Zhang Gang, an analyst at Central China Securities in Shanghai, said the market is unlikely to suffer a major downturn soon after the crackdown news, but expects downside pressure to mount as the U.S. federal Reserve moves to raise interest rates, possibly by year-end.

Hong Kong shares climbed on Tuesday, tracking gains in global markets after the benchmark for U.S tech stocks hit its highest in 15 years.

The Hang Seng index climbed 1.4 percent, to 22,676.17 points and the Hong Kong China Enterprises Index jumped 1.1 percent, to 10,351.64.


China stock market graphics suite

includes timeline of crash, PE ratios, market caps Reporting by Ruby Lian, Pete Sweeney and Shanghai Newsroom; Editing by Shri Navaratnam

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