China Stocks Jump on Support Pledge as Deals Spur Developers

Chinese stocks climbed the most in more than a week after the new head of the securities regulator signaled he will keep propping up the equity market and developers announced acquisitions.

The Shanghai Composite Index advanced 1.8 percent, with more than 50 shares rising for each one that fell. China Vanke Co. jumped the most in more than a year in Hong Kong after saying it plans to pay as much as 60 billion yuan ($ 9.2 billion) for a stake in Shenzhen’s urban transit company. China Overseas Land & Investment Ltd. climbed to the highest close this year after saying it’ll acquire Citic Ltd.’s property assets.

Liu Shiyu, chairman of the China Securities Regulatory Commission, said it was too early to think about the state rescue fund leaving the market, while a new registration-based system for IPOs would take time. Data over the weekend showed the nation’s industrial production and retail sales both grew less than economists forecast in the first two months of 2016, while China’s broadest measure of new credit for February came in less than half of the estimate in a Bloomberg survey.

The Shanghai Composite rose to 2,859.50 at the close. The ChiNext Index of smaller companies jumped 4.6 percent, the most in six weeks. The Hang Seng China Enterprises Index climbed 1.4 percent at 3:30 p.m. in Hong Kong, while the Hang Seng Index advanced 1 percent.

Source: Bloomberg

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China Stocks Cap Worst Two-Day Drop in Month as Developers Slump

China’s stocks capped their steepest two-day drop in more than a month as property developers slumped amid concern the government will impose measures to cool the real estate market.

The Shanghai Composite Index slid 2 percent at the close. A measure of Shanghai developers dropped for a sixth day. The stock market extended declines in the afternoon, a reversal of trading patterns in the past week when the gauge pared losses or rebounded in late trade on suspected buying by state funds. Industrial & Commercial Bank of China Ltd. and PetroChina Co., considered targets of funds buying because of their index weights, fell at least 1.4 percent. Data on Thursday showed consumer prices rose the most since mid-2014 in February.

Source: Bloomberg

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