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China: Stocks end 2% higher in sharp rebound
[SHANGHAI] China stocks rebounded roughly 2 per cent on Thursday, as some investors bet that the lows hit during last summer's rout would not be so easily breached.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.1 per cent, to 3,221.57, while the Shanghai Composite Index gained 2.0 per cent, to 3,007.65 points.
The SSEC bounced off its intraday low of 2,867.55, merely 17 points above its 2,850.71 August low, which is seen by many investors as a key psychological support level. "This level is unlikely to be breached in the short term, as the market has dropped so much and so fast," said Samuel Chien, a partner of Shanghai-based hedge fund manager BoomTrend Investment Management Co. "It's a level worth putting money in, for both the national team and investors," to bet for a decent rebound, he said. "But in the longer term, whether the level can hold really depends on economic situations, whether the yuan can remain stable, and how successful economic restructuring is." All main sectors rose, with Shenzhen's start-up board ChiNext jumping 5.4 per cent.