Alexa

China shares rebound, tracking regional recoveries

China shares rebound, tracking regional recoveries

Chinese stocks rebounded in afternoon trading Tuesday after falling to their lowest level in more than two years Monday. The rally followed surges in regional markets as governments around Asia pledged market-boosting measures.
Banks and brokerages led the advance.
The benchmark Shanghai Composite Index climbed 2.8 percent, or 48.47 points, to close at 1,771.82. The smaller Shenzhen Composite Index added 2.17 percent to 483.27.
Stock markets across Asia staged a broad recovery Tuesday, with Hong Kong's Hang Seng index advancing more than 14 percent and Japan's benchmark Nikkei 225 soaring 6.4 percent.
While Japan's central bank is expected to step into the market, remarks by China's premier, Wen Jiabao, encouraged investors in Hong Kong. He told a group of Hong Kong reporters in Moscow Wednesday that the central government will fully support Hong Kong to overcome difficulties amid the financial crisis.
Despite dismal third-quarter earnings reports by many listed Chinese companies, analysts believe the impact on the market might not be as severe as some thought earlier.
"Investors were prepared for news on companies' losses," said Zhang Linchang, a strategist for Guotai Junan Securities in Shanghai.
Brokerages gained now that long promised trials for margin trading are underway. Haitong Securities Ltd. surged by the daily 10 percent limit, to 21.10 yuan, while Citic Securities Ltd. jumped 8.34 percent to 19.10 yuan.
Banks were also strong gainers.
Midsize lender Pudong Development Bank Ltd. surged by 10 percent to 12.10 yuan; Bank of China Ltd. rose 4.38 percent to 3.10 yuan and China Construction Bank, Ltd. added 5.15 percent to 3.88 yuan.
Property shares were mixed with China Vanke Ltd., the country's biggest developer, off 1.53 percent to 5.79 yuan after it reported lower profits in the third quarter. Rival Poly Real Estate Group gained 5.51 percent to 13.97 yuan.
In currency trading, China's yuan strengthened to 6.8423 to the U.S. dollar in over-the-counter trading around 0700 GMT, up from Monday's close of 6.8516.


Updated : 2020-12-01 22:56 GMT+08:00