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China stocks rebound on Wall Street rally, but gains limited by lack of confidence in outlook

China stocks rebound on Wall Street rally, but gains limited by lack of confidence in outlook

Chinese stocks rose Wednesday as an overnight rally in U.S. financial shares boosted Chinese banks, but the rebound was capped by a lack of confidence in prospects for further gains.
The Shanghai Composite Index closed 18.72 points, or 0.6 percent, higher at 3,347.88 _ after gaining as much as 4.1 percent during the session.
The secondary Shenzhen Composite Index fell 4.4 percent to 973.13 points amid strong selling of small cap shares.
Market heavyweight PetroChina climbed 3.7 percent to 12.11 yuan. China Ping An Insurance climbed 6.6 percent to 56.85 yuan. And Industrial and Commercial Bank of China gained 3.3 percent to 6.20 yuan.
In New York overnight, investment bank UBS jumped 14.6 percent and Lehman Brothers surged 17.8 percent after each announced fundraising plans. The Dow Jones Industrial Average gained 3.19 percent to 12,654.36.
"There should have been a real rebound after the last two days' losses, especially since the main securities newspapers carried stories today saying the government will move to support the stock market," said Xu Zhiyuan, a strategy analyst at Fuqiang Investment in Shanghai.
But Xu said the rally early in the day succumbed to worries that institutional investors will unload shares when lockup periods for shareholding reforms and IPOs expire in coming months.
Airlines dropped back after recent gains. China Eastern Airlines fell 4.1 percent to 11.80 yuan. Air China lost 1.9 percent to 15.81 yuan.
In currency dealings, the U.S. dollar was at 7.0292 yuan around 0733 GMT on the over-the-counter market, up from Tuesday's close of 7.0144.


Updated : 2021-10-17 05:14 GMT+08:00