The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 5.4 percent, to 4,106.56, while the Shanghai Composite Index gained 4.6 percent, to 3,877.80 points.
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The Hang Seng index rose 2.1 percent to end the day at 24,901.28 points, but was down 4.5 percent for the week in its biggest weekly decline since mid-March past year.
Beijing, which has struggled for more than a week to bend the market to its will, unveiled yet another battery of measures and the People’s Bank of China said it would step up support to brokerages enlisted to prop up shares.
The move came as China Securities Regulatory Commission encouraged major shareholders and senior managers to steady stock prices by buying more shares.
The stock market has been in a downward spiral since hitting a peak in June, with the benchmark Shanghai Compiste Index shedding more than 30%.
Beijing’s increasingly frantic attempts to stem a stock market rout were finally rewarded on Thursday as Chinese shares bounced around 6 percent.
The market rise was fueled by factors that include new laws that made it easier for companies to be listed on the stock exchange, which then met with the huge influx of willing investors purchasing their shares.
In the first sign that market losses could feed through into depressed spending in the broader economy, China’s automakers association more than halved its 2015 forecast for vehicle sales growth to 3 percent, from 7 percent, on Friday. “Rather than a short-term drop where Chinese stock prices perhaps in retrospect were over-inflated, this could have more of a long-term impact on Canadian resource-based companies”. In the past few days, the pages have been filled with messages declaring that many companies have suspended trading of their shares. China’s stock markets are dominated by retail investors, adding to the volatility. Whether that’s true or not, two things are certain: Stocks are cheaper now than they were a month ago.
With Shanghai struggling, Chinese investors pulled out of Hong Kong – where multiple mainland firms are listed – sending it plunging nearly six percent in its worst single-day performance since November 2008, the height of the global financial crisis.
Police are now planning a nationwide campaign to crack down on illegal operations with regards to securities and futures, to protect capital markets and investors’ interests, the official Xinhua news agency reported late Thursday, citing the Ministry of Public Security. China’s economy has been slowing down.
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“And the problem of the market is that all the players move in the same direction, and are too emotional,”. Moscow sees oil dropping to $56 a barrel, that is, a three month low; Copper, a key export for countries like Chile, is already falling.
