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Home / International Markets / China stocks rally to 4yrs stronger as banks surge, Shanghai Composite soars 1.9%
China stocks rally to 4yrs stronger as banks surge, Shanghai Composite soars 1.9%

China stocks rally to 4yrs stronger as banks surge, Shanghai Composite soars 1.9%

SHANGHAI: China’s stocks rallied to the peak since April 2010 as shareholders heaped into the major companies amid an increase in trading while small-cap shares sank.
PetroChina Co. and Industrial & Commercial Bank of China Ltd., the nation’s two biggest stocks, gained more than 3 percent. Aluminum Corp. of China Ltd. jumped by the daily limit for a second day, while Baoshan Iron & Steel Co. advanced to the highest level since April 2011. Haitong Securities Co. paced losses for brokerages after saying it plans to raise HK$29.9 billion ($3.9 billion) a private share placement. Leshi Internet Information & Technology Co., the second-biggest company in the ChiNext small-caps index, plunged 8 percent.
The Shanghai Composite Index (SHCOMP) rose 1.9 percent to 3,165.97 at 10:56 a.m., while Hong Kong’s Hang Seng China Enterprises Index (HSCEI) surged 3.2 percent. The ChiNext slumped 4.5 percent after the 21st Century Business Herald reported that the China Securities Regulatory Commission will set up a special task force to crack down on stock manipulation, citing commission spokesman Zhang Xiaojun.
“Steel and financial companies are blue chips that did not rebound as much before and are lower in valuation, so they are catching up now,” said Mao Sheng, an analyst at Huaxi Securities Co. “Reports that the regulator is cracking down on stock manipulation is impacting stocks that rose too much earlier, especially the small caps, so you see the Chinext slumping today.”
Trading volumes in the Shanghai index were 113 percent above the 30-day average for this time of day, according to data compiled by Bloomberg. Its 30-day volatility jumped to the highest levels since