China’s stocks climbed for a second day as speculation the government will accelerate mergers among state-owned enterprises overshadowed worse-than expected economic data.

The Shanghai Composite Index climbed 1.8 percent to 3,812.02 at 10:13 a.m. local time. China is considering combining China Shipping Group and Cosco Group, its two major shipping companies, according to people familiar with the matter. Producer prices fell in July to the lowest level since 2009 and exports dropped more than expected, data over the weekend showed. The Hang Seng China Enterprises Index of mainland shares traded in Hong Kong slid 0.7 percent.

The CSI 300 Index rose 2 percent. The Hang Seng Index slipped 0.7 percent. Trading volumes in the Shanghai Composite were 15 percent lower than the 30-day average for this time of day.

The Shanghai gauge has rebounded 8.7 percent since the July low as authorities took unprecedented measures to shore up markets including banning stake disposals by major shareholders, suspending initial public offerings and compelling state-run institutions to support the market with equity purchases.

Source: Bloomberg