Following the weakness on Monday and Tuesday and after languishing for most of the day in quiet trade, stocks in Shanghai staged another late rally in trade today to finish up 4.90% and record their biggest gain since late August.
Volumes and trade were light for most of the day until the last hour of trade when the buying ignited and the market roared 147 points to close at 3,152.
Every sector of the Shanghai composite was higher and Reuters reports that over 1,000 stocks closed limit up at +10% on the day. Stocks in the CSI300 index were also higher rising 4.98% while shares in Hong Kong posted a more subdued 2.69% gain.
It’s not clear what drove the surge in the indices but late rallies have become common with China’s so-called “national team” of financial institutions corralling their resources to support stock prices.
The South China Morning Post reported authorities were considering easing restrictions on margin lending that were introduced when the market started crashing. If it goes ahead, it would inject significant extra liquidity into the market.
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