China stocks rise on IPO resumption plan

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 1.2 per cent to 3,840.35, while the Shanghai Composite Index gained 1.6 per cent to 3,646.88 points.

The China Enterprises Index lost 1.8 percent, to 10,314.74 points.

The FTSEurofirst 300 index was down 0.05 percent, having closed up 0.3 percent on Friday, and the euro zone’s blue-chip Euro STOXX 50 fell 0.01 percent.

India’s S&P BSE Sensex finished down 0.6%, at 26121.40, after Prime Minister Narendra Modi’s party sustained a surprise defeat in a key state election.

Of course, Chinese stocks have rallied before in the face of disappointing earnings.

China’s stock regulator has adjusted the timing of public offerings in the past – depending on how the market is trading – introducing new listings when it believes investor appetite is healthy enough. The winners were the firms that impressed us the most through a combination of factors including innovation, financial performance and strategic execution, and after also surveying the views of regional analysts and investors.

IPOs in China were suspended in July after the main market index dove 30% from its June 12 peak, as panic-triggered sell-off spiked a market bubble that was inflated partly by heavily-leveraged trading. Expectations have massively increased for a December-move, and earlier in the summer this prospect seemed to freak out many investors as the global economy juggled a broad-based Asian slowdown along with carnage in Commodity prices.

Outstanding margin loans rose for the fifth consecutive session to over 1.1 trillion yuan ($172.86 billion) Monday, the highest level since August 25, according to Wind Information Co.

“The time is ripe for resuming IPOs, as over-the-counter leveraged trading has been nearly cleared”, said Guan Qingyou, researcher with Minsheng Securities. 80 in Asia Friday before the U.S.jobs report.

Emerging-market stocks dropped to a five-week low as concern grew about the prospect of higher USA interest rates and Chinese inflation data signaled more weakness in the world’s second-biggest economy.

Market bellwether BHP Billiton plunged 3.6 percent, mirroring a 3.6 percent slide in its US ADRs after a dam at an iron ore mine in Brazil that it partly owns burst last Thursday. The Properties sub-index dropped the most at 2.02 percent, followed by the Commerce & Industry at 1.51 percent, the Utilities at 1.31 percent and the Finance at 1.23 percent. Sun Hung Kai, one of Hong Kong’s largest property developer by market value, fell 0.71 percent to 97.5 HK dollars. Chinese imports fell a whopping -20.4% from a year earlier, and even exports were down by -3.7%.