Chinese stocks decline to lowest since Jan 2015

Beijing - Volatility in Chinese stocks fell to the lowest since January 2015 as the benchmark gauge eked out gains amid a lack of trading catalysts.

A gauge of 90-day price swings on the Shanghai Composite Index dropped to 24, less than half the level of its peak last year. The equity gauge rose 0.1% in a third day of increases.

Shanghai Jinqiao Export Processing Zone Development surged after a person with knowledge of the matter said its base was the front-runner to become Tesla Motors Inc.’s Chinese production site.

Aluminum Corporation of China paced declines by commodity producers as most industrial metal prices slid.

The Shanghai gauge is trading in line with its 100-day moving average as subdued economic activity and MSCI Inc.’s rejection of mainland shares cap gains in the index, which is the world’s worst performer this year.

Turnover has waned along with investor interest in stocks, with the value of shares traded of the Shanghai bourse down almost 90% from a June record.

The Shanghai Composite traded at 2 889.66 at 1:32 p.m. The Hang Seng Index advanced 0.5%, extending Monday’s 1.7% rally that was sparked by optimism Britain will vote to remain in the European Union. The Hang Seng China Enterprises Index rose 0.3%.

Hong Kong’s richest man stepped up his calls for Britons to vote in favour of staying in the EU.

"If Brexit happens, it will be detrimental to the UK and it will have a negative impact to the whole of Europe," CK Hutchison Holding Chairman Li Ka-shing told Bloomberg Television’s Angie Lau.