BEIJING: China stocks surged for the second day, reversing an early-week slump in frenetic trading on Friday as markets regained a measure of composure following a barrage of government support measures to stem the rout.
The relative calm in mainland markets followed a barrage of government measures this week
The CSI300 Index of China’s biggest companies jumped 5.8 percent by midday
The CSI300 Index of China’s biggest listed companies jumped 5.8 percent by midday, after Thursday’s 6.4 percent rise, heading for a weekly gain of over 6 percent.
The Shanghai Composite Index was 5.2 percent firmer at the end of the morning session, also poised to end the week up around 6 percent.
The positive sentiment rippled to Hong Kong, where stocks gained over 2 percent.
“Chinese investors move in herds. After panic selling drove the market down to the extreme, prices are now starting to move in the other direction,” said Samuel Chien, a partner of Shanghai-based hedge fund manager BoomTrend Investment Management Co.
The relative calm in mainland markets followed a barrage of government measures this week as policy makers scrambled to put a floor under a stock market that had tumbled around 30 percent in just three weeks, wiping trillions of dollars off the market value.
These measures include banning listed companies’ big shareholders from selling shares over the next three months, directly buying stocks and mutual funds through China’s state margin lender with liquidity support from the central bank, and limiting shorting activities in stocks and stock index futures.
