BEIJING: Chinese stocks rose for a third day, their longest winning streak in a month, as optimism grew over President Xi Jinping’s state visit to the U.S. and brokerages rallied on prospects of an exchange link between London and Shanghai.
The Shanghai Composite Index climbed 0.7 percent to 3,177.02 at the 11:30 a.m. local-time break. Citic Securities Co. and Haitong Securities Co. surged more than 3 percent. British officials said they will study the feasibility of setting up a London-Shanghai stock trading link. China and the U.S. are expected to reach agreements on trade, energy, climate, finance, aviation, defense and infrastructure construction during Xi’s Sept. 22-25 visit, Foreign Minister Wang Yi said last week.
“There seems to be a premature rally in the brokerage industry,” said Shenshen Dai, a trader at SWS Futures Co. in Shanghai. “There’s a long way to go in terms of the exchange link.”
The Shanghai Composite’s three-day, 3 percent rebound comes amid plunging turnover and the world’s wildest price swings. Volatility surged as the government took unprecedented measures to stop a $5 trillion plunge, and remains elevated amid uncertainty over the state’s appetite to provide more support and signs of a weakening economy. Preliminary data on Wednesday will likely signal a contraction in manufacturing.
