AGL 8.30 Increased By ▲ 0.44 (5.6%)
ANL 10.59 Increased By ▲ 0.24 (2.32%)
AVN 78.60 Increased By ▲ 0.70 (0.9%)
BOP 5.45 Increased By ▲ 0.06 (1.11%)
CNERGY 5.59 Increased By ▲ 0.58 (11.58%)
EFERT 80.25 Decreased By ▼ -0.55 (-0.68%)
EPCL 69.60 Increased By ▲ 1.50 (2.2%)
FCCL 15.30 Increased By ▲ 0.74 (5.08%)
FFL 6.53 Increased By ▲ 0.33 (5.32%)
FLYNG 7.18 Increased By ▲ 0.53 (7.97%)
GGGL 10.85 Increased By ▲ 0.27 (2.55%)
GGL 16.79 Increased By ▲ 0.38 (2.32%)
GTECH 8.14 Increased By ▲ 0.02 (0.25%)
HUMNL 7.04 Increased By ▲ 0.02 (0.28%)
KEL 2.99 Increased By ▲ 0.11 (3.82%)
LOTCHEM 30.77 Increased By ▲ 2.24 (7.85%)
MLCF 28.98 Increased By ▲ 2.03 (7.53%)
OGDC 82.75 Increased By ▲ 0.60 (0.73%)
PAEL 16.97 Increased By ▲ 0.32 (1.92%)
PIBTL 6.08 Increased By ▲ 0.24 (4.11%)
PRL 18.10 Increased By ▲ 1.35 (8.06%)
SILK 1.15 Increased By ▲ 0.05 (4.55%)
TELE 11.25 Increased By ▲ 0.28 (2.55%)
TPL 9.20 Decreased By ▼ -0.02 (-0.22%)
TPLP 19.88 Increased By ▲ 0.22 (1.12%)
TREET 26.46 Increased By ▲ 0.55 (2.12%)
TRG 94.60 Increased By ▲ 0.99 (1.06%)
UNITY 19.50 Increased By ▲ 0.50 (2.63%)
WAVES 14.34 Increased By ▲ 0.78 (5.75%)
WTL 1.30 Increased By ▲ 0.06 (4.84%)
BR100 4,187 Increased By 80.1 (1.95%)
BR30 15,474 Increased By 343.5 (2.27%)
KSE100 42,096 Increased By 670.9 (1.62%)
KSE30 15,883 Increased By 222.7 (1.42%)
Markets

China stocks rebound as regulators signal support for market

  • At the close, the Shanghai Composite index was up 3.11pc at 3,314.15, while the blue-chip CSI300 index ended up 2.98pc.
Published July 20, 2020

SHANGHAI: China stocks rose 3pc on Monday, led by financial firms, after regulators moved to bolster the market by lifting equity investment cap for insurers and encouraging mergers and acquisitions among brokerages and mutual fund houses.

At the close, the Shanghai Composite index was up 3.11pc at 3,314.15, while the blue-chip CSI300 index ended up 2.98pc.

The start-up board ChiNext Composite index was higher by 1.31pc.

Leading the gains, the CSI300 financials index jumped 4.3pc after the state regulator lifted equity investment cap for insurers.

China's banking and insurance regulator said it was raising the cap on how much the country's insurers can invest in equity assets, an effort trying to bring more long-term funds into the capital market.

"The raising of equity investment cap for insurers will have an evident positive impact for the short term by bringing fresh money into the stock market," said Zheng Zichun, an analyst with AVIC Securities.

Securities firms also gained, with the CSI SWS securities index ending up 5.2pc, as the regulator encouraged M&As in the industry.

"The rally in the stock market is something regulators need, as it could reduce China's domestic social pressure given the economic difficulties brought by the coronavirus outbreak," the analyst said.

Monday's gains followed Shanghai shares' worst weekly drop in five months as better-than-expected GDP data in China fuelled worries over the pace of policy easing.

The recent correction by Friday had wiped out nearly 3 trillion yuan ($429.13 billion) off the market capitalization of Shanghai stocks, according to data from the Shanghai Stock Exchange.

Analysts, however, said the rally was yet to be over, thanks to the country's economic recovery, continued policy support and market reforms.

Comments

Comments are closed.