Chinese stocks rise to 10-week high in early trading on Thursday

HONG KONG (BLOOMBERG) - Chinese stocks rose on Thursday (Nov 5), sending the benchmark index to a 10-week high, as brokerages extended rallies.

The Shanghai Composite Index climbed 0.6 per cent to 3,480.58 at 9.45am local time, adding to Wednesday's 4.3 per cent gain.

Citic Securities Co and Haitong Securities Co jumped more than 4 per cent as brokerages comprised eight of the 10 biggest gainers in the index. China Southern Airlines Co dropped 1.1 per cent after the Chinese authorities said Mr Si Xianmin, the carrier's chairman, is under investigation for "serious" discipline violations.

Brokerages have surged this week as the Communist Party unveiled its five-year development plan to boost the economy and as investors speculated on the start of the Hong Kong-Shenzhen trading link. Margin trading has jumped to a two-month high in Shanghai, while the benchmark index rebounded 18 per cent from an August low.

The Hang Seng China Enterprises Index and the Hang Seng Index both slipped 0.2 per cent in Hong Kong. The CSI 300 Index climbed 0.9 per cent, led by financial and technology shares.

Margin traders raised holdings of shares purchased with borrowed money for a second day on Wednesday, with the outstanding balance in Shanghai climbing to 636.5 billion (S$140.7 billion) yuan.