Chinese stocks rose a third day, sending the Shanghai Composite Index past the 4,000 level, as technology shares rallied and more companies resumed trading after being halted during a recent rout.
The Shanghai Composite gained 1.1 percent to 4,001.05 at 10:18 a.m., heading for the first close above that level since July 1. The ChiNext index of small-company shares jumped 3.8 percent. PetroChina Co. slid 1.9 percent. A total of 633 companies were suspended from trading just after the open on mainland exchanges Monday, or 22 percent of total listings, down from 635 at the close Friday.
Volatility is increasing as companies start trading again and the government boosts measures to support the stock market after an almost $ 4 trillion rout. China Securities Finance Corp. can access as much as 3 trillion yuan ($ 483 billion) of borrowed funds from sources including the central bank and commercial lenders, people familiar with the matter said Friday.
The Shanghai Composite posted a 2.1 percent gain last week. The benchmark gauge has rebounded 13 percent from July 8 through July 17 after tumbling 32 percent in a month as investors unwound margin-debt positions. Margin traders increased holdings of shares purchased with borrowed money for the first time in three days on Friday, with the outstanding balance of margin debt on the Shanghai Stock Exchange rising by 0.3 percent to 921.3 billion yuan.
Source :: Bloomberg