BEIJING: Chinese stocks rose, halting the biggest two-day slide in three weeks, as a rally for technology shares overshadowed losses for Citic Securities Co. and financial companies.
The Shanghai Composite Index added 0.2 percent to 3,009.57 at the 11:30 a.m. break, after tumbling 6.1 percent in the previous two days. About six stocks climbed for each one that fell in the gauge as trading volumes slumped 47 percent below the 30-day average. Technology stocks, the worst performers over the past month, rallied 2.2 percent for the biggest gain among industry groups. Citic Securities slid 2.4 percent after China’s biggest brokerage confirmed its president was being investigated.
“The market is poised to rebound as some investors believe the market is a bit oversold, particularly shares of the smaller companies,” said Dai Ming, a fund manager at Hengsheng Asset Management Co. in Shanghai. “There’s lots of uncertainty over Citic Securities. Its share price may come under more pressure until things get clearer.”
The CSI 300 gained 0.1 percent. The Hang Seng China Enterprises Index rose 1 percent in Hong Kong, while the Hang Seng Index climbed 1.1 percent.
The Shanghai gauge has tumbled 41 percent from its June high to erase $5 trillion in value on mainland bourses as leveraged investors fled amid concerns valuations weren’t justified given the weakening economy.
