Beijing's emergency moves bring some relief to stocks

Shanghai

CHINESE stocks rose on Monday, as an unprecedented series of support measures unleashed by Beijing brought some relief to a market whose headlong slide over the past three weeks had raised fears about the stability of the world's second-biggest economy.

In weekend policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China's state-backed margin finance company, which in turn would be aided by a direct line of liquidity from the central bank.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen closed up 2.9 per cent, while the Shanghai Composite Index gained 2.4 per cent. That represented a significant pullback, however, from an initial burst of euphoria that pushed both indexes up around 8 per cent when trading began, raising questions about whether the rebound can be s…