Monday, 22 October 2018

Shanghai Composite closed up 4.1% its biggest one-day rise since March 2016



One of China's leading stock indexes has seen its highest daily spike in more than two years following signs that the government will step in to support battered equity markets.

 
The Shanghai Composite closed up 4.1%, its biggest one-day rise since March 2016.


The moves extend a rally that began on Friday and after investor confidence surged on assurances from Beijing.


Stocks had been falling as China's economic growth continued to stutter.


On Friday, top Chinese financial officials - including economic adviser Liu He and the heads of the securities and insurance commissions - issued a statement to buoy investor sentiment in bruised markets.
"The barrage of headlines from key Chinese officials on Friday was deafening and extremely co-ordinated, which has been to great effect," Pepperstone analyst Chris Weston said in a research note.


Over the weekend, the government published a draft of new rules for personal tax deductions, according to Reuters.


The moves come as the world's second largest economy faces challenges such as high debt levels and an intensifying trade war with the US.


Data out Friday showed that in the third quarter of the year, the Chinese economy grew at the slowest rate since the global financial crisis, expanding by 6.5% from a year earlier.




BBC     News.