Stocks hit 2-week high as con­fi­dence re­turns

China Daily (Canada) - - BUSINESS - By BLOOMBERG

Chi­nese main­land stocks rose to a two-week high as volatil­ity slumped amid grow­ing in­vestor con­fi­dence State in­ter­ven­tion has sta­bi­lized eq­ui­ties.

The Shang­hai Com­pos­ite In­dex climbed 0.9 per­cent to 3,647.93 points at the close, led by tech­nol­ogy and gold com­pa­nies. While price swings in the gauge have fallen to an eight-month low and thenum­ber of newin­vestorsjumpedto a four-month high, turnover slumped with trad­ing vol­umes 19 per­cent be­low the 30-day av­er­age onWed­nes­day.

A sense of calm has re­turned to the stock mar­ket as au­thor­i­ties an­nounced the re­sump­tion of ini­tial pub­lic of­fer­ings, scrapped a rule re­quir­ing bro­ker­ages to hold net long po­si­tions and lim­ited lever­aged bets. The Shang­hai gauge has re­bounded 25 per­cent from its Au­gust low, af­ter tum­bling 43 per­cent from its June peak.

“The mar­ket has ba­si­cally sta­bi­lized andweare not likely to see very wild swings as what hap­pened dur­ing the stocks rout,” said Wang Zheng, the Shang­hai-based chief in­vest­ment of­fi­cer at Jingxi In­vest­ment Man­age­ment Co, who’s keep­ing his stock al­lo­ca­tion un­changed at 80 per­cent. “We’ll see more mar­ket func­tions go back to nor­mal in the fu­ture.”

In a mar­ket where daily fluc­tu­a­tions ex­ceed­ing 3 per­cent were once the norm dur­ing a mid-year rout, this week’s moves of less than 1 per­cent in the Shang­hai in­dex have barely reg­is­tered on price charts.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.