BEIJING: Most Chinese stocks rose as a rally by smaller companies overshadowed concern that a flood of new share sales will lure funds from existing equities.
The ChiNext index of smaller companies surged 3.3 percent, helping the Shenzhen Composite Index advance to a record. Both Shenzhen Tempus Global Travel Holdings Ltd. and Beijing Cisri-Gaona Materials & Technology Co. jumped by the 10 percent daily limit. Aluminum Corp. of China Ltd., also known as Chalco, retreated 6 percent after saying it wasn’t involved in a revamp of rare-earth companies linked to the parent.
Almost two stocks rose for each that fell on the Shanghai Composite Index, which was little changed at 4,309.69 at the 11:30 a.m. local-time break. The China Securities Regulatory Commission hasn’t conducted an investigation or offered window guidance to some mutual funds on their exposure to ChiNext stocks, the commission said on its website on Friday after the market closed. Twenty companies are scheduled to sell initial public offering shares from Tuesday to Thursday, which may freeze 2.8 trillion yuan ($451.1 billion).
