May 30, 2016 / 4:31 AM / 2 years ago

China stocks up slightly, investors sidelined by policy, economic uncertainty

SHANGHAI May 30 (Reuters) - 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.

The CSI300 index added 0.2 percent to 3,068.06 points at the end of the morning session, while the Shanghai Composite Index also gained 0.2 percent to 2,826.19 points.

China CSI300 stock index futures for June tacked on 0.2 percent, to 3,039.8, 28.26 points below the current value of the underlying index.

Growing uncertainty over China’s monetary policy and economic health is keeping investors from making bets in the country’s stock and money markets, sending volumes plunging.

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, a Reuters poll showed, throwing more cold water on hopes that the world’s second-largest economy is reviving.

The Hang Seng index rose 0.7 percent to 20,719.78 points, while the Hong Kong China Enterprises Index gained 0.7 percent 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, saw net inflows of 0.45 billion yuan.

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.

Reporting by Pete Sweeney; Editing by Shri Navaratnam

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