SHANGHAI : China’s stocks swung between gains and losses with Hong Kong’s equities market shut for a holiday and investors weighing the prospects of more stimulus to support the economy.
The Shanghai Composite Index rose 0.3% to 3,435.62 at 10:11am local time, after changing direction at least four times. Lepu Medical Technology Beijing Co. surged 6.6% to lead a rally for health-care companies. PetroChina Co. paced losses for energy producers.
The Shanghai gauge has rebounded 12% in October, heading for the steepest monthly advance in six months, amid speculation the government will loosen monetary policy and announce more reforms of state-owned enterprises to bolster the economy. China needs a cut in lenders’ reserve-requirement ratios, according to a front-page commentary in the Economic Information Daily on Wednesday, which is owned by the official Xinhua News Agency.
“The market will be in a range-bound mode now as there’s some pressure to take profits in the short term,” said Wu Kan, a Shanghai-based fund manager at JK Life Insurance Co., who’s keeping stock holdings unchanged. “The market still has room to rebound further as the policy outlook is optimistic.”
