China Stocks Jump in Last Hour of Trading on State Support Signs
- Government buying may be trigger for rebound, IG Asia says
- ChiNext small-caps index jumps 7.2% for biggest one-day gain
China’s stocks surged after the Shanghai Composite Index slid below the key 3,000 level, with gains coming in the last hour of trading in a pattern that’s become associated with state support. A gauge of small-company shares rose by a record.
The Shanghai Composite Index jumped 4.9 percent to 3,152.26 at the close, halting a two-day, 6.1 percent loss. Only 12 stocks out of the more than 1,100 traded in Shanghai fell as trading volumes slumped 28 percent below the 30-day average. Technology stocks, the worst performers in the past three months, rallied 9.4 percent for the biggest advance among industry groups. Citic Securities Co., which confirmed its president was being investigated for insider trading, erased a loss of as much as 5 percent.