BEIJING: Chinese stocks rose for a third day as brokerages climbed after the securities regulator gave the green light to initial public offerings by 10 companies as a five-month freeze on new share sales ends.
The Shanghai Composite Index advanced 0.5 percent to 3,650.05 at 11:16 a.m. local time, extending last week’s 1.4 percent gain. Guosen Securities Co. and Everbright Securities Co. increased at least 2.2 percent. Consumer and drug companies also rose after China’s cabinet said it will promote the services industry to boost economic growth. Guotai Junan International Holdings Ltd. plunged 9.2 percent in Hong Kong after the brokerage said it hasn’t been able to contact its chairman and chief executive officer.
The China Securities Regulatory Commission has restarted IPOs for five companies to list on the Shanghai stock exchange and five in Shenzhen, according to a statement on its official microblog on Friday. The resumption shows authorities are becoming more confident the stock market can stand on its own after the index rallied back into a bull market this month.
The CSRC said that IPOs of 28 companies will be allowed to proceed by the end of the year, after they were suspended in July following a market rout. The 28 will probably tie up 3.4 trillion yuan ($533 billion) in subscription, according to the median of six analyst estimates compiled by Bloomberg.
Hong Kong’s Hang Seng China Enterprises Index dropped 0.2 percent, dragged down by energy companies. The Hang Seng Index added 0.1 percent.
