China’s stock-index futures fell amid concern new share sales will lure funds from existing equities.
Futures on the CSI 300 Index expiring in June, the most active contract, lost 1.5 percent to 4,550.80 as of 9:26 a.m. local time. Twenty companies are scheduled to sell initial public offering shares from Tuesday to Thursday, which may freeze 2.8 trillion yuan ($451.1 billion) based on the median estimate of a Bloomberg survey.
The Shanghai Composite Index dropped 1.6 percent on Friday, while the CSI 300 declined 1.8 percent. Hong Kong’s Hang Seng China Enterprises Index advanced 1.7 percent and the Hang Seng Index gained 2 percent. The Bloomberg China-US Equity Index added 0.6 percent in New York.
The Shanghai Composite has rallied 113 percent over the past year amid speculation the government will extend interest-rate cuts and speed up mergers of state-owned firms. It is valued at 16.6 times 12-month projected earnings, compared with the five-year average multiple of 10.2, according to data compiled by Bloomberg.