While investors are concerned that rising inflation could lead to tightened market liquidity, some analysts are bullish about China's A-share market, saying that it is likely to rebound when speculators are convinced that inflation is well under the government's control.
Stocks on the Chinese mainland rose, capping the benchmark index's biggest five-day gain in six weeks. That advance came as automakers and industrial companies rallied on speculation their shares are undervalued given the prospects for earnings growth.
Chinese stocks advanced for a third day Friday, with the benchmark Shanghai Composite Index up 0.13 percent, or 3.6 points, to 2,752.75 points.
SAIC Motor Corp, China's largest carmaker, jumped to the highest level in a month in Shanghai trading on speculation the company's shares are undervalued as economic growth will sustain industry earnings.
China's stock index futures closed up Thursday with the contract for February, the most actively traded, rose 1.52 percent from the previous trading day to end at 3,030.4 points.
Hong Kong stocks closed down 63.62 points, or 0.27 percent, at 23,779.62 on Thursday. Turnover totaled HK$69.97 billion compared with Wednesday's HK$68.21 billion ($1 equals to HK$7.789).
The ChiNext Index, launched by the Shenzhen Stock Exchange (SSE) on June 1, 2010, rose 17.28 points, or 1.74 percent, to close at 1,013.02 Thursday.
Chinese stocks closed higher Thursday with the benchmark Shanghai Composite Index up 1.49 percent, or 40.34 points, to 2,749.15 points. The Shenzhen Component Index climbed 1.69 percent, or 195.66 points, to11,795.33 points.
Antimony prices in China may extend a rally to a record 100,000 yuan ($15,177) a ton, after almost doubling last year, as supplies of the metal used in car batteries remain constrained, industry analysts said.
Glencore International AG, the world's largest commodities trader, plans to raise about $2 billion to $2.5 billion in Hong Kong as part of a $10 billion initial public offering in the Chinese city and London, according to two people familiar with the matter.
Hong Kong stocks closed up 54.41 points, or 0.23 percent, at 23,843.24 on Wednesday.
China's stock index futures closed up Wednesday with the contract for February, the most actively traded, rose 1.28 percent from the previous trading day to end at 2,987.2 points.