China stocks re­bound as liq­uid­ity wor­ries ease, re­form hopes rise 1.1 per­cent

China Daily (Hong Kong) - - BUSINESS | MARKETS - By REUTERS

China stocks re­bounded on Wed­nes­day, as fears of a liq­uid­ity squeeze in the bank­ing sys­tem sub­sided af­ter risks from a bond scan­dal ap­peared con­tained, and on a pledge to deepen re­forms in Sta­te­owned sec­tors.

The blue-chip CSI300 in­dex rose 0.9 per­cent, to 3,338.54 points, while the Shang­hai Com­pos­ite In­dex gained 1.1 per­cent to 3,137.43 points, both snap­ping a two-ses­sion los­ing streak.

In­vestors re­laxed af­ter Sealand Se­cu­ri­ties, a bro­ker­age em­broiled in a scan­dal, said on Wed­nes­day it would take re­spon­si­bil­ity for forged bond agree­ments.

Sealand’s com­mit­ment eased con­cerns of a liq­uid­ity squeeze, trig­ger­ing a sharp re­bound in bond prices.

The State-owned As­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mis­sion said China would vig­or­ously push for­ward mixed-own­er­ship re­forms in sec­tors in­clud­ing telecom­mu­ni­ca­tions, avi­a­tion and de­fense.

Most sec­tors gained, led by in­fras­truc­ture and trans­port, while prop­er­ties and banks stead­ied.

China United Net­work Com­mu­ni­ca­tions closed 3.8 per­cent higher at a 16-month high. The stock has gained more than 75 per­cent since the end of Septem­ber.

the gain in the bench­mark Shang­hai Com­pos­ite In­dex on Wed­nes­day

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