16 de abril de 2015 / 4:59 / en 3 años

China stocks rise sharply despite PBOC unease over margin trading

* CSI300 +2.3 pct; SSEC 2.0 pct; HSI +0.2 pct

* Market digested negative impacts from index future launches

* Regulators warns of risks, orders checks on margin financing

By Samuel Shen and Pete Sweeney

SHANGHAI, April 16 (Reuters) - China stocks rose sharply on Thursday, erasing early losses, as the red-hot market brushed off the authorities’ unease over the levels of margin trading in a market that has jumped 27 percent this year.

The Shanghai branch of China’s central bank has ordered commercial lenders to check for risks in their margin trading business, and submit their margin trading accounts and list connected wealth management products.

Last week alone, 273 billion yuan of fresh capital flowed into securities desposits accounts, the third straight week of net inflows, while 1.68 million stock accounts were opened, the highest level on record.

To caution against risks, China’s stop securities regulator Xiao Gang urged investors to be “rational and calm” when investing in stocks.

Investors also refused to be put off by the possible negative impact from the launch on Thursday of two stock index futures products <0#CIC:> <0#CIH:>, based on the CSI500 Index of 500 small-cap stocks, and the SSE50 Index of 50 heavyweights.

The futures products were expected to give investors strong incentives to lock in profits or even go short on small-cap stocks with lofty valuations, as reflected by Wednesday’s 4.7 percent slump in Shenzhen’s start-up board ChiNext.

But some investors saw the correction as a chance to buy.

“We think that the short-term correction doesn’t change the upward trend of China’s stock market,” Bosera Asset Management said in a note to clients.

“Instead, price adjustment in some stocks provide good opportunity for us to build positions.”

Investors also drew some solace from data released on Thursday showing a 2.2 percent rise in foreign direct investment (FDI) in China, signifying continued foreign confidence in China’s economy.

The CSI300 index rose 2.3 percent, to 4,482.69 points at the end of the morning session, while the Shanghai Composite Index gained 2.0 percent, to 4,163.93 points.

Hong Kong also rose. The Hang Seng index added 0.2 percent, to 27,674.04 points, while the Hong Kong China Enterprises Index gained 0.3 percent, to 14,514.57.

HSBC said in a report that Chinese mutual funds could raise 500 billion yuan ($80.71 billion) from local investors to invest in Hong Kong.

“Investors should continue to build positions in Hong Kong due to its extremely low valuation, relative market isolation and significant underperformance compared with its Chinese comrades,” said Hong Hao, chief strategist with BOCOM International.

Hong expects markets in China to show increased volatility, and growing divergence in performance between large and small caps.

China’s baijiu kings Kweichow Moutai Co Ltd and Wuliangye Yibin Co Ltd soared in Thursday morning trade after smaller rivals flagged a revival in profits.

SAIC Motor Corp Ltd shares rose as much as 5.6 percent to all-time high, as analysts say China’s largest automaker has lagged the rally in mainland markets. ($1 = 6.1947 Chinese yuan renminbi) (Editing by Simon Cameron-Moore)

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