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China shares rebound amid regional gains, bargain-hunting

China shares rebound amid regional gains, bargain-hunting

Chinese share prices rose Wednesday, boosted by gains in other markets and bargain-hunting following recent declines.
The benchmark Shanghai Composite Index rose 2.3 percent, or 95.86 points, to 4,334.04. The Shenzhen Composite Index rose 2.5 percent to 1,355.31.
Earlier this week, the China Securities Regulatory Commission urged companies to think carefully when planning share offerings, after the benchmark index fell to a seven-month low on concerns over a potential liquidity crunch.
Analysts said a report in the state-run Shanghai Securities News Wednesday that another eight Chinese mutual funds have been given regulatory approval to offer private wealth management services also helped boost investor confidence.
Financial companies, among the worst performers over the past week, led the market higher Wednesday. China Merchants Bank, which dropped nearly 10 percent last week, gained 4.9 percent to 31.84 yuan, despite the expiry of a two-year lock-up period of 2.53 billion shares Wednesday.
"It looks like investors are buying in the belief that the current price of stocks has priced in fears about upcoming new share offerings," said Guosen Securities strategist Tang Xiaosheng.
Ping An Insurance (Group) Co. of China rose 5.6 percent to 71.82 yuan.
The company has fallen 33.9 percent since the beginning of the year on worries that the value of its existing shares will be diluted when 3.1 billion new Ping An A-shares come to market on March 1 following the expiry of the lockup period for institutional holdings in last year's IPO.


Updated : 2021-06-14 11:57 GMT+08:00