Chinese stocks surge after talk of a massive new buying package

Guang Niu GettyImages

Chinese stocks are ending the week in positive territory after fresh reports of more cash coming into the market from government agencies and fund managers.

This morning the Shanghai Securities News reported that there is 1 trillion Yuan of fund manager money sitting on the sidelines as “ammunition” to be deployed into the market should the need arise. This news followed reports yesterday of a 2 trillion Yuan package being sought by the China Securities Finance Corp in addition to money already advanced from authorities. – SSEC 4 hour chart

That’s seen the Shanghai composite up 1.95% at 7.30 GMT while the CSi 300 is up 1.64% to 3,894.

Zhang Qi, an analyst at Haitong Securities, told Reuters that his “feeling is that funds in the stock market are quite sufficient now and there’s a very high possibility the market will rebound in August.”

No doubt the authorities agree.

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