China stocks extend rise, sign of market stabilization
SHANGHAI (Reuters) - China stocks rebounded for the second day on Tuesday, in a further sign of improving investor sentiment that may help the market gradually stabilize after the rout since mid-June.
The CSI300 index <.CSI300> of the largest listed companies in Shanghai and Shenzhen rose 0.9 percent, to 3,339.03, while the Shanghai Composite Index <.SSEC> gained 0.9 percent, to 3,185.62 points.
China's volatility index, a gauge of investor fears, has dropped to 40 percent from an August peak of 64 percent.
But some analysts warn that the rebound could be temporary as valuations of small stocks are still high, and the Chinese economy has yet to find its feet.
China's President Xi Jinping told the Wall Street Journal in an interview that developing capital markets was a key goal of China's reforms, which will not change just because of current market volatility.
Most sectors ended the day higher but the CSI300 Infrastructure Index <.CSI300II> was down 0.1 percent.
Small caps reversed the losses in morning trade with Shenzhen's start-up board ChiNext <.CHINEXTC> gaining 0.2 percent at the close.
Brokerage shares, including CITIC Securities <600030.SS> and Haitong Securities <600837.SS>, jumped as investors bet securities firms would benefit from a possible market link-up between Shanghai and London as suggested by UK finance minister George Osborne in Shanghai on Tuesday.
(Reporting by the Shanghai Newsroom; Editing by Jacqueline Wong)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fisker (FSR) files form 10-K, sees more job cuts, reiterates going concern doubts
- Masonite (DOOR) Shareholders Approve Transaction with Owens Corning (OC)
- CSS Entertainment (CSSE) Receives Nasdaq Delinquency Letter
Create E-mail Alert Related Categories
Market Check, ReutersSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!