BEIJING: Chinese stocks edged higher amid rising volatility following Thursday’s plunge.
Jiangsu Broadcasting Cable Information Network Corp. rallied by the 10 percent daily limit, extending gains since its initial public offering last month to more than 1,000 percent. PetroChina Co., the nation’s largest company by market value, declined 1.4 percent to lead energy companies lower. Evergrande Real Estate Group Ltd., China’s third-biggest developer by assets, plunged 22 percent in Hong Kong after raising a net HK$4.6 billion ($593 million) below a marketed price range.
The Shanghai Composite Index rose 0.1 percent to 4,625.99 at the break, after dropping 4.1 percent earlier in the session. The index tumbled 6.5 percent on Thursday after brokerages tightened lending restrictions and the central bank drained cash from the financial system.
“The market is likely going to experience massive volatility,” said Gerry Alfonso, a Shanghai-based director at Shenwan Hongyuan Group Co. “People are getting nervous and having some very short time frame for investment. This has all to do with swings in the mood of retail investors.”
Hong Kong’s Hang Seng China Enterprises Index fell 0.3 percent at 12:05 p.m. local time, while the Hang Seng Index added 0.3 percent. The CSI 300 Index rose 0.6 percent. A measure of 10-day volatility on the Shanghai Composite climbed Thursday to the highest level in four months.
