China stocks rose modestly on Monday morning with many investors keeping to the sidelines as they ponder the monetary policy outlook as the economy fails to show signs of a sustained recovery.
At the end of the morning session, the CSI300 index added 0.2 per cent to 3,068.06 points, while the Shanghai Composite Index also gained 0.2 per cent to 2,826.19 points.
China CSI300 stock index futures for June tacked on 0.2 per cent, to 3,039.8, 28.26 points below the current value of the underlying index.
Volumes plunged as growing uncertainty over China’s monetary policy and economic health is keeping investors from making bets in the country’s stock and money markets.
According to a Reuter poll, official data on Wednesday is expected to show that growth in China’s manufacturing sector likely stalled in May after slight expansions in the previous two months, throwing more cold water on hopes that the world’s second-largest economy is reviving.
The Hang Seng index rose 0.7 per cent to 20,719.78 points, while the Hong Kong China Enterprises Index gained 0.7 per cent to 8,657.39.
The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 132.86.
A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong, and vice versa.
The northbound quota for the Hong Kong-Shanghai Stock Connect, currently set at 13 billion Yuan (¥1.35 billion), saw net inflows of 0.45 billion Yuan (¥0.05 billion).
Total volume of A shares traded in Shanghai was 5.74 billion shares, while Shenzhen volume was 7.93 billion shares.
Total trading volume of companies included in the HSI index was 0.8 billion shares.
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