Chinese equities have entered a bull market as state stimulus reversed a $5 million crash and investors returned to the market.
The Shanghai Composite Index closed at 3,522.82, up 1.8%. The benchmark index took its gain from its August 26 low to over 20%. Brokerages led Thursday’s advance, while the turnover was the highest since Aug. 18.
Also, the Hang Seng China Enterprises Index added 0.7% in Hong Kong, extending a 17% surge since the September 7 low.
China implemented extreme measures to bolster stocks as a boom turned to bust in June, including cutting selling, banning key shareholders from selling shares, and using state funds to purchase equities.
People’s Bank of China slashed its interest rate six times in the previous year, to a record low of 4.35%.
The material has been provided by InstaForex Company – www.instaforex.com