Chinese stocks up at midday, shaking off morning slump

viernes 29 de mayo de 2015 00:32 GYT

* SSEC +0.12 pct, CSI300 +0.61 pct

* Steep morning drop erased by mid-morning

* Follows market slump on Thursday

* Investors worried by margin trade changes, monetary policy

By Pete Sweeney and Samuel Shen

SHANGHAI, May 29 (Reuters) - Chinese stocks ended the morning session up slightly on Friday, but the market saw high volatility after a sharp sell-off on Thursday that some analysts saw as the beginning of a correction.

After a grim start in which the Shanghai Composite Index briefly dipped more than 4 percent, key indexes recovered to bounce in and out of positive territory for most of the morning.

The CSI300 index rose 0.6 percent to 4,863.39 at the end of the morning session, while the Shanghai Composite Index gained 0.1 percent to 4,626.00.

The sell-off on Thursday, which saw turnover in Shanghai set a new record at 1.2 trillion yuan ($193.51 billion), was set off by a number of factors, including margin finance tightening moves by brokerages, a central bank move to drain market liquidity and an upcoming flood of initial public offerings (IPOs).   Continuación...