BEIJING: Chinese stocks soared Friday morning, following a previous 5.8% rally, as the markets seemed to have stabilized amid the government’s recent drastic measures to stem the rout. The Shanghai Composite Index SHCOMP, +5.16% climbed 5.9%. The rally came after China’s police department pledged to investigate into “malicious short-selling” jointly with the securities regulator, with a state media report saying Friday that the police have already carrying out an investigation on a dozen of companies and individuals suspected of having shorted blue-chip stocks on Wednesday. Meanwhile, the securities regulator has also reportedly requested all the listed companies to submit by Friday specific plans on how to support their stock prices, including but not limited to share buybacks, stock incentive plans, etc. In Hong Kong, the Hang Seng Index HSI, +2.12% advanced 2.1%, adding to a 3.7% gain on Thursday. The mainland-China-tracking Hang Seng Index HSCEI, +4.31% also cracked 3.9% higher. Chinese securities firms extended their rally, as China Galaxy Securities Co. Ltd. 6881, +9.06% surged 12.3%, Shenwan Hongyuan H.K. Ltd. 0218, +8.29% spiked 12.2%, and Haitong Securities Co., Ltd. 6837, +6.80% leapt 9.1%. Among other top outperformers, property developer China Vanke Co., Ltd. 2202, +7.63% jumped 8.7%, China Minsheng Banking Corp., Ltd. 1988, +11.98% gained 5.2%, and China Citic Bank Corporation Ltd. 0998, +5.57% advanced 4.5%. Index heavyweights China Mobile Ltd. 0941, +3.82% and China Construction Bank Corporation 0939, +3.14% both rose 2.7%.
