The Shanghai Composite Index added 5.3 points, or 0.2 percent, to 2,290.29 at 9:33 a.m. local time, driving valuations to 9.4 times estimated earnings, near the record low of 8.9 times reached on Jan. 6. The CSI 300 Index rose 0.2 percent to 2,466.07. The Bloomberg China-US 55 Index, the measure of the most-traded U.S.-listed Chinese companies, retreated 1.5 percent in New York.
China may announce methods for local pensions to invest in the stock market as soon as the first quarter, the Securities Times reported today, citing an unidentified person. As much as 30 percent of pension assets, or about 580 billion yuan ($91.6 billion), may be allowed for stock investment, according to the newspaper, which is operated by the People’s Daily.
“The hope lies in government support measures such as encouraging more local pensions to invest in stocks and the market believes these measures will materialize soon,” said Wei Wei, an analyst at West China Securities Co. in Shanghai. “Corporate earnings are slowing but most of this looks like they are being priced into equities now.”
The Shanghai Composite has gained 3.9 percent in January, its best start to the year since 2009, on speculation slowing growth will prompt the central bank to relax monetary policies and the government will take measures to support stocks.
Chinese insurers have invested between 10 percent and 12 percent of their assets in equities, lower than the 25 percent cap, the China Securities Journal reported today, citing company data. Insurers’ equities investment continued to drop in the fourth quarter, it said. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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