China stocks rebound on govt consideration

China’s stocks rallied on Monday, led by consumer and healthcare firms, after the Chinese government said it will “fully” consider the possible impact on banks and markets before finalizing its new asset management rules.

At the close, the Shanghai Composite Index was up 32.25 points, or 0.98 percent, at 3,322.20 points. The blue-chip CSI300 index was up 1.65 percent, with its financial sector sub-index higher by 0.83 percent.

The largest percentage gainers in the main Shanghai Composite Index were Shanghai Shibei Hi-Tech up 10.08 percent, followed by Shenyang Jinbei Automotive Co gaining 10.08 percent and Wenyi Suntech Co up by 10.01 percent.

Chinese stocks tumbled last month after the government issued draft guidelines to tighten rules on the asset management industry, in its latest step to fend off systemic risks from the country’s growing shadow banking sector.

In a rare protest, 10 Chinese banks met last week to raise strong objections to the central bank’s plan, saying it may cause a rush of redemptions among other risks, three sources with knowledge of the matter told Reuters.

So far this year, the Shanghai stock index is up 6 percent, while China’s H-share index listed in Hong Kong is up 20.2 percent. Shanghai stocks have declined 0.82 percent this month.

About 13.20 billion shares were traded on the Shanghai exchange, which is roughly 75.3 percent of the market’s 30-day moving average of 17.52 billion shares a day. The volume in the previous trading session was 13.32 billion.