China’s stocks rose, extending a weekly gain, as coal and steel producers advanced after the government pledged to further cut overcapacity and excess labor in those industries.
The Shanghai Composite Index climbed 0.8 percent to 2,938.52 at the close. Angang Steel Co. and Shanxi Lu’an Environmental Energy Development Co. jumped more than 6 percent as policy makers unveiled details of supply-side reforms, including targeting further reductions in crude steel production capacity by as much as 150 million tons and “large scale” cutbacks in coal output. The offshore yuan rose and benchmark money-market rates fell. Hong Kong’s Hang Seng China Enterprises Index advanced 1.5 percent at 3:03 p.m.
China has vowed in the past to curb overcapacity in industries such as coal and steel, which has dragged down the world’s second-largest economy. The Shanghai Composite has fallen 17 percent this year, making it the worst-performing major global benchmarks tracked by Bloomberg, amid concern about the government’s ability to manage the economy and yuan volatility, along with a steep decline in leverage.